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NDA in "Laymans Terms" please????


pierss08
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Ok - Collection agency refuses to do a PFD on a $300 debt. I am going to pay the damn thing so it at least shows a zero balance.

Everyone is telling me to do a NDA... Help me understand what it is, why it would help me and the best way of going about doing it.

Thanks!!! Everyone here is great.

Steve

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You send them the money and attach a letter that essentially says "You can't talk about this debt to anyone. You can't even acknowledge that it ever existed. If you do, you agree to pay me $x in damages."

Then you dispute the TL with the CRAs. If it comes back as "verified" that means that the CA did in fact "talk" to the CRA about it (though in reality it was probably just two computers talking). So then you sue the CA $x for violating NDA.

That's how it's supposed to work. I don't know how much luck you'll have though. It presumes that either the CA will sign the agreement and return it to you to get their payment (unlikely), or that a conditional endorsement is enforceable in your state (varies). Then, of course, you have to convince a judge of your case if you do actually sue.

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If you do that you need more than an attached letter..

you need to put that agreement on the back of the check in small print

that states something to the effect ..

by cashing this check XXX co. agrees to....

:-)

if banks in your state sends out those checks to consumers that have

the tiny print on the back that signs them up for

some bogus service monthly charge,

than RE checks are probably enforceable

in your state.

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  • 1 year later...

Sorry for resurrecting an old thread, but a question on this (I live in Wisconsin, and I do get those checks in the mail all the time):

1 - If paying a debt, I can write out an NDA on the check which basically forces the creditor into an NDA?

2 - I can print this on a money order and then get a copy of the cashed money order as a means of executing the NDA if necessary?

Then I do not even have to ask them to sign an NDA, I can just write it on the check and they are bound by cashing my payment?

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You send them the money and attach a letter that essentially says "You can't talk about this debt to anyone. You can't even acknowledge that it ever existed. If you do, you agree to pay me $x in damages."

Then you dispute the TL with the CRAs. If it comes back as "verified" that means that the CA did in fact "talk" to the CRA about it (though in reality it was probably just two computers talking). So then you sue the CA $x for violating NDA.

That's how it's supposed to work. I don't know how much luck you'll have though. It presumes that either the CA will sign the agreement and return it to you to get their payment (unlikely), or that a conditional endorsement is enforceable in your state (varies). Then, of course, you have to convince a judge of your case if you do actually sue.

Has anybody seen this work? I contacted one of my creditors on the 28'th because I discovered in my credit report a collection debt for a medical thing that I assumed the insurance had paid. (I never got a bill in any case). I mailed it certified asking the verify the debt and indicating if it was valid that I would pay it off ASAP if they would send me a letter saying it would be removed from my credit report.

They posted a letter the very next day with a fax from where they apparently bought the debt, and it lists my name but pretty much else. Fax was dated middle of the 2009, and they made no mention of agreeing to remove the entry from my credit reports.

I just finished another letter saying that enclosing a fax where they purchased the debt was not "validation" as far as I can tell, but I would be willing to pay the balance to get it off my credit report if they are willing to promise to remove it from my credit report. I will be sending that letter tomorrow.

What sort of penalties can one put in an NDA since posting a note saying "Tell anybody about this and you owe me a billion trillion dollars" while amusing is not likely to hold up in court.

Also the conditional enforcement? Anybody know if that would fly in Colorado?

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A Non-Disclosure Agreement isn't suited for this type of situation. The collector has a permissible purpose for reporting to the CRAs. Even if it did work and the collector did owe you money, they aren't going to pay you. You would have to hire an attorney, pay a retainer fee, file a lawsuit, pay a filing fee, etc., etc and then, even if you won, you'd have to try to get the money out of them.

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What if on the back of the check, instead of the verbiage from an NDA, you basically notate the verbiage for an agreement for deletion? Or something like they agree that the debt was never acknowledged as valid, but is being paid as a courtesy in exchange for the TL to be deleted from the CRA, and then hold them up to deleting it ...

Also, if a case is filed in small claims, I thought you do not need to hire an attorney? So if the damages was something like $1000 - can't a small claims suit be file and if a judgment received, it can then be executed in the same manner judgments are executed on us? (ie. sheriff showing up at their office to collect, etc.)

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  • 2 weeks later...

I think the same thing, as quoated below, goes for all conditional agreements:

Even if it did work and the collector did owe you money, they aren't going to pay you. You would have to hire an attorney, pay a retainer fee, file a lawsuit, pay a filing fee, etc., etc and then, even if you won, you'd have to try to get the money out of them.

You could sue them for not performing to the letter of the agreement but I think the victory would be mostly pyrrhic. Besides, most collection agencies have myriad personnel who perform menial routine tasks who would not even read the back of the check or money order because all the important info for them is on the front - who is the check from and what is the amount of payment. Why would they need to look at the back?

If you want the collector to agree to something, send a settlement letter with the terms. Settling is much easier than litigating and someone will have to read it to see what it says, unlike a check which is routinely deposited with a stack of other checks.

Edited by Downto0
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