Endorsement clause on payment to collectn agency

[RIDOUTMEL]

I sent payment to a collection agency that contained an endorsement clause that they would remove the debit.

It was endorsed. Wasn't that binding?

What should I do if the check was endorsed but nothing removed from CR?

Thanks,

[momof5]

I guess you meant DEBT not debit!

Restrictive Endorsements are not binding in most states. You have to check your own state laws to see if it is binding.

[SecretAgentWoman]

Did you give them advance notice of the restricted endorsement? How was the endorsement listed on the check?

I think it's binding in Texas, but you still can't just "sneak" it in, you have to make it clear...

[bigjohnstud4200]

They can also cashed a restrictive endorsement by saying it was "cashed in protest". For your shake, I hope you haven't reset the SOL of the debt, however, you have acknowledge the debt as being yours.

[SecretAgentWoman]

"Cashed under protest" doesn't apply to restrictive endorsements, it applies to checks for the wrong/disputed amount owed, to secure your legal ability to collect the rest. "Cashed under protest" is itself a restricted endorsement.

[bigjohnstud4200]

"Cashed under protest" doesn't apply to restrictive endorsements, it applies to checks for the wrong/disputed amount owed, to secure your legal ability to collect the rest. "Cashed under protest" is itself a restricted endorsement.

Hmmm, good to know!

[RIDOUTMEL]

The endorsement was a stamp that read:

Restricted Endorsement: Deposit constitues a binding agreement to remove/delete account # ***** from credit reports.

I requested a copy of the front and back of the check and sent it along with a letter to the CA as a reminder and to TU as proof. I also mentioned U.C.C- ARTICAL 3-Negotiable instruments. TU has given CA until 05/06 to respond. CA hasn't responded to my letter.

[hiblues]

Was it Paid in Full?

If so, why not send an ITS citing breach of contract and copies of the docs you have.

if they ignore- file suit.

I bet they delete rather than fight... since they only thing they "win"

is the TL remaining.

[RIDOUTMEL]

yes paid in full...so I guess the ITS is my next step.

Thanks for your help.

[hiblues]

Here is a sample of what I sent FAXED to the CA .. attn legal dept.

it was deleted within 5 days

-------------

From

HiBlues

yada yada street

yada yada city

RE: Account # XXXXXXX

Dear Legal Department Representative:

I have found that very few people or companies deliberately avoid to follow through on their agreements. I sent in a check for full payment with a Restrictive Endorsement Agreement on the back of the check. I made a reasonable attempt to notify (CA) of the agreement and (CA) endorsed the agreement.

See bottom for a copy of the agreement ( check before and after with CA stamp)

I have checked my credit report recently and I have discovered that (CA) still has not followed thru on the agreement. I sincerely hope that this was just an honest mistake and not a flagrant disregard of the agreement.

I am prepared to ignore this breach if (CA) simply follows thru with the original agreement and permanently deletes the trade line from my credit reports within 7 days. Please note: I have several on-line services that allow me to view my updated credit reports daily, if I don't see the trade line deleted from the affected credit reports within that time, I will take whatever steps necessary that are available to me.

I will NOT let this drop; I plan on buying home in the near future and my future mortgage payments will go up over $300 a month because of this one negative trade line so I have a key financial interest in pursuing this to the end.

You have been duly notified and are cognizant that:

1. you are in violation of the original agreement;

2. this trade line should be deleted within 7 days;

3. this is an attempt to exhaust all remedies before proceeding with further actions;

4. CA is aware that by keeping this trade line on my credit reports it is causing me serious financial harm and that they may be held liable for punitive damages;

5. I am fully prepared to let a judge decide the outcome of any dispute;

6. I dispute this debt; and

7. I will immediately stop all remedies or complaints against CA if they simply delete the trade lines.

Please, lets resolve this today and as uneventfully as possible shall we. I have better things to do with my future time and money as I'm sure you do as well.

You may e-mail me to inform me that you will be deleting the trade lines ASAP.

My e-mail is XXXXX

Thank You for your cooperation on this matter.

Hiblues

[hiblues]

oh,

and let me ask...

Does the CA have a way to pay on-line with a CC?

Since it is paid in full,.... if you pay them extra, (like $30)

this

may ( I said may) constitute over collecting.... which is a violation.

Even if it doesn't constitute Over Collecting -- they would have to defend themsleves in court -- all for a account that is paid in full...

Just a thought.

Just one more thing to sue for...

[RIDOUTMEL]

WOW....

Thanks....I will glean from your letter and send tomorrow.

I really appreciate this.

[myscoresawful]

For what ever it is worth, even though I live in TN, I had a collection agency reporting a debt that I had incurred while living in CA. The Collection agency was/is also in CA.

A friend of mine works at a different collection agency in CA and I contacted him to find out what I could do. He told me to get a money order for the amount of the debt, and in the "for" line, write the account number/paid in full/balance $0/Remove reporting.

I did this and within 2 weeks received a letter from the agency stating that they had sent letters to the big 3 to remove entries and sure enough, they were gone 2 weeks after that.

I only have one other collection from the state of CA, and will try this as a last resource because I DON"T owe what they say I do and I'm just getting tired of dealing with them.

Is the debt you're dealing with in TX? If so, your best bet would be to find other people who have tried this and had success.

GOOD LUCK!

[bigjohnstud4200]

For what ever it is worth, even though I live in TN, I had a collection agency reporting a debt that I had incurred while living in CA. The Collection agency was/is also in CA.

A friend of mine works at a different collection agency in CA and I contacted him to find out what I could do. He told me to get a money order for the amount of the debt, and in the "for" line, write the account number/paid in full/balance $0/Remove reporting.

I did this and within 2 weeks received a letter from the agency stating that they had sent letters to the big 3 to remove entries and sure enough, they were gone 2 weeks after that.

I only have one other collection from the state of CA, and will try this as a last resource because I DON"T owe what they say I do and I'm just getting tired of dealing with them.

Is the debt you're dealing with in TX? If so, your best bet would be to find other people who have tried this and had success.

GOOD LUCK!

California is one of the states that restrictive endorsements work for. What you have to do is write a letter telling them that you will agree to pay under the condition that they must delete. Wait 2 weeks and if they don't reject the offer, send them a MO with an RE mentioning the contract and your done.

[lolah]

Which states honor a RE? I have searched and came up with nothing specific for my state.