Settlement Payment Question

[Fairy Enchantress]

I am in the process of negotiating a settlement with a collection agency.

I don't want the collection agency to agree to settle with me for less than they say I owe, and then turn around and hire another collection agency to collect the difference. I read that in most states this is illegal. But I am in one of the states where it is legal.

Some states have modified this rule. In the following states, if a creditor cashes a full payment check and explicitly retains his right to sue you by writing "under protest or without prejudice" with his endorsement, then he can come after you for the balance. But those exact words must be used. If he writes "without recourse," communicates with you separately, notifies you verbally or writes on the check that it is partial payment, it is not enough.

•Alabama

•Delaware

•Massachusetts

•Minnesota

•Missouri

•New Hampshire

•New York

•Ohio

•Rhode Island

•South Carolina

•South Dakota

•West Virginia

•Wisconsin

So my quesion is; is there a clause I should put in my settlement offer or should I write someting on the settlement payment money order when I send it to them?

[Chapel Hill]

There is no incentive to not take all that they can from you and then sell the remaining balance on the street to the highest bidder. That's primarily the reason to fight. Unless you beat the bastards they don't go away. Paying anything shows you have a willingness and ability to pay. Who walks away from that?

[willingtocope]

My suggestion would be....DO NOT SETTLE WITH THE COLLECTION AGENCY (if it is a CA and not a JDB). Call the OC and settle with them directly. If they try to push you off on the collection agency, tell them it is your personal policy not to deal with such people, and if they want their money, they'll deal with you directly, or take you to court and let the judge decide.

If it is a JDB...I would never willing pay a JDB anything unless ordered by a judge.

You cannot trust either a CA or JDB to abide by a contract either verbal or in writing.

The point is, you stand a very good chance of winding up in court one way or the other (unless you deal with the OC), so you might as well do it on your terms.

[Fairy Enchantress]

Thank you both.

I appreciate your input. I haven't written the settlement letters yet. Which now it sounds like a good thing.

My circumstance is, these are high medical bills. There is no way I could afford to pay them in full. I have fixed some medical bills in the past by contacting the OC and used the WhyChat Hippa letter. The collections were small and I had them removed.

I didn't think to go this route because the bills are so high. Many of them are with the same hospital and have a huge amount all together. I worried to contact them because I would be waking a sleeping giant.

What would you do in this case? Still contact the OC?

[nascar]

Have them sign a release.

[Fairy Enchantress]

I found this on the Internet. Is this what you mean Nascar?

Restrictive Endorsements

Some people seem to think that if they send a payment with a restrictive offer written on the instrument, it will be solid. This is not true. A creditor has a right to cash a check for a balance due. To avoid this and avoid ending up with a paid charge off, do the following.

Send a letter to the creditor or collection agency. Offer 50% of the debt in exchange for a more neutral credit rating. Give them at least 30-45 days to object. If they do not, send your payment with another letter attached stating that this is the restrictive payoff that you informed them of at least 30 days ago. Put the agreement on the back of the cashiers check or money order. Do not use your own checking account. State in this letter that you offered a settlement and that they had ample time to object. If they cashed the check and remained silent- you do have a deal. Be sure to view state laws however.

If that is not what you meant what would your release state? And if it is what is stated about that you meant , how do you write all that on the back of a money order?

[nascar]

No, a release is not the same as an accord and satisfaction, or restrictive endorsement. Google "sample general release."

[Fairy Enchantress]

Good thing I aksed! Nascar thank you. Is this a good one?

GENERAL RELEASE

BE IT KNOWN, that ______________________________________

________________________________________, (hereafter referred to

as the "First Party"), for and in consideration of the sum of

___________________________________________ ($ _______________ )

Dollars, or other valuable consideration received from or on

behalf of ______________________________________________________

________________________, (hereafter referred to as the "Second

Party"), the receipt of which is hereby acknowledged, do(es)

hereby remise, release, acquit, satisfy, and forever discharge

the said Second Party, of and from all manner of action(s),

cause(s) of action, suits,debts, sums of money, accounts,

reckonings, bonds, bills, specialties, covenants, contracts,

controversies, agreements, promises, variances, trespasses,

damages, judgments, executions, claims and demands whatsoever,

in law or in equity, which said First Party ever had, now has,

or which any personal representative, successor, heir or assign

of said First Party, hereafter can, shall or may have, against

said Second Party, by reason of any matter, cause or thing

whatsoever,from the beginning of time to the date of this

instrument.

IN WITNESS WHEREOF, the said First Party has hereunto

set his/her hand and seal this ________ day of ________________,

19_____.

Signed, sealed and delivered

in the presence of:

____________________________ _____________________________

Witness

____________________________ ____________________________

Witness

State of _____________ )

) ss.

County of ____________ )

The foregoing instrument was acknowledged by me this ______

day of _____________, 19 ____ by:_______________________________

who is/are personally known by me or who has/have produced:_____

______________________ as identification and who did not take an

oath.

________________________________ (SEAL)

Notary Public

State of

My Commission Expires:

This instrument was prepared by:

[nascar]

You'll want to make sure it covers all your concerns, but that's pretty much it.

[Chapel Hill]

Its admirable you want to pay something but in all honesty you probably has issues related to the high medical bills. If you weren't sick someone you love more than life itself was. You need your cash, every dime.

Let em sue you. Fight em in court. You may have 2 years before they file. Use that time to build your legal file.

Remember answer, due dilligence letter-stip to file cross, general denial, motion for leave to file x action, rogs, doc prod, admissions, motion to compel, motion for sanctions, ops to their MSJ, mutual dismissals with prejudice after they fed wire into your suspense account, nice dinner for your better half a scotch to me by virtue of that dinner with your better half.

good luck. keep your cash. never ever pay em a dime.

find the local law library. get your docs ready. don't forget. cross complaint. otherwise you don't get a dime.

[Fairy Enchantress]

Gosh now I have no idea what to do. Hmmm. Thanks for all the advice. Now I am going to soak it all in, and then decide whether I should start a settlement offer. Ugh!