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Pay for delete


sj145
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I am trying to get a collection company (UCB) to do a pay for delete. I am talking to them over the phone and for now they are saying that they will not do this. Are there any techniques that I can used for leverage in this argument. My goal is to get this off my credit report.

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Some have tried a "Restrictive Endorsement" on a check

The Restricted Endorsement

Normally you add a section of fine print to the back of the check stating "Cashing of this check constitutes your acceptance of my restricted offer. Any and all future claims for this debt are null". You can also add a notation on the front that says "restricted endorsement: cashing constitutes agreement". (Don't send these types of offers to lockboxes because it will never be seen). That is why it is very important to send the offer first then follow up about 20 days later with the payoff. This way, the collection agency or creditor had plenty of time to reply to the offer with a yea or nay.

A word of caution

Not all states offer acceptance of restrictive endorsements and some collection agencies will cash your check and continue collecting the debt. To avoid this pitfall, be sure to read your state and the creditors state UCC code to see what their rule is on "Negotiable Instruments". If they allow it then you are good to go however if they do not then there is no guarantee it will work. Also be sure to read through terms and disclosures if you are attempting to use one with an original creditor because many of them now add a section in their disclosures that they do not accept reduced payoffs with restricted endorsements and you have no rights to do so. Be careful!

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