Back of Check Contract

[ccs]

What is the name of your state? Alabama

For several years now I've been trying to clear up my credit. I've got several old debts from a few years ago that I've tried to get removed. One is not my debt, but my wife's medical bills (only a few hundred). The other isn't fully accurate.

Let me set the stage for my question.

Back a year a so ago, I did some work on a building where when I got paid, I went to the bank to get a bank draw from the construction loan of the company doing the construction. On the back of the check that I cashed stated that all work had been completed and that there would not be any liens file against the property.

I thought this similar type of method might work well for credit collection accounts. So, I drafted a statement to be printed on the back of my check.

Here is the statement:
" By endorsing and depositing these monies, you (company name) agree that this debt is paid in full. You further agree, to remove all derogatory statements and he like from all credit repositories, (Experian, Equifax and Trans Union), and further agree t never report this debt in any manner to these agencies. You also agree to give e a full release from any and all future claims, judgments and liens and the like. X_________________ DO NOT ENDORSE BELOW THIS LINE"

I did this because I didn't want these accounts to reflect even worse negativity when I paid them off. So I sent this to two different companies, one a collection company and one the original creditor. BOTH deposited the funds and didn't respond to the statement on the back of the check. Both had the opportunity to return the funds without depositing them.

My opinion is that this was a contract between me and the party cashing it. It was just like these companies who send checks in the mail signing up for certain services. I have copies of the canceled checks.

Since finding out that they cashed the checks and didn't return them, I have sent copies to the credit agencies and haven't heard anything yet. It's too early to tell at this point.

I've also contacted one of the creditors and they say it wasn't a settlement, even though the back of check says it is paid in full.

I've contacted an attorney and am waiting to hear back from them if I have a case for breach of contract and defamation of credit. The two different companies I've done this with is in Texas and Colorado.

QUESTION: What do you think about this? And Do you think I will succeed in getting it removed from my credit report? What steps, if any should I take?

QUESTION: If I decide to pursue this with an attorney, will I have to get an attorney in the state where the debt occurred, or is in collection? Example one attorney in Colorado and the other in Texas? Or can I use an attorney in Alabama, where I currently reside.

Thanks,
Blake

 

[ccs]

Principle

By the way, it's the principle of the thing. The total debt from these two transactions is only a few hundred dollars. I paid each of them $100 each. (I owed $250 on each.)

Last year at this time I had over a 630 credit score. In November I paid off over $20K in consumer debt, and a house of $100K. Now my credit score is under 530 after most of my debt is paid. The scoring system sucks.

Blake

 

[ceara19]

Just pay the $300 you owe. Going to court is going to cost much, much more then paying the debt. Even if you won the case, you're not going to get rich. In all likelihood, the only thing you would "win" is having the debt erased and may COURT fees (note, not attorney fees).

More then likely, the "contract" isn't valid. There is probably something in an agreement that you signed with the businesses that would void your "contract". If conning your way out of debt it was as easy as you seem to think it is, NO ONE would be in debt.

 

[ccs]

Any others?

I know I should have thought of this before but, my credit is worth more now than $300.

I would be glad to pay a few hundred per incident to have a lawyer represent me in these cases. I personally don't think that it would ever go to trial because of the small amount, that is unless I can prove additional damages.

Any other thoughts out there?

Blake

 

[ecmst12]

IMO, putting that statement on the back of the check when you were NOT paying the bill in full and did NOT have a settlement agreement in place with the creditor was dishonest and sneaky. If it would hold up in court I would be very surprised.

 

[ccs]

Settlement

Come on...

You honestly think that if I sent them a settlement offer on a written piece of paper (which I did) and then didn't put this statement on the back of this check, you think that they wouldn't have deposited my check?

In my research on this matter, it's called Accord and Satisfaction. I actually have a case. The debt doesn't belong to me and I've tried to dispute it with the creditor. I've asked for validation and they've produced a hospital form without my signature. I've met all the qualifications of the UCC and think I have a case.

There was no trickery or sneaky actions on my part. I disclosed fully the details of the settlement and further paid almost half of what they said I owed. I wasn't paying them cents on the dollar (another qualification of the UCC on this matter)

Blake

 

[racer72]

Simply put, your restrictive endorsement cannot override the provisions of a legal contract. You will find out the hard way in court.

 

[ecmst12]

They cashed the check because they believed you owed the money. If you never got any specific written settlement agreement (and it sounds like you didn't even get a verbal one), then I can't see how your one-sided "negotiations" would hold any weight in court. If the debt wasn't yours, then you shouldn't have paid it; by making partial payment that was you taking ownership of the debt and admitting it's yours. As far as I know, they are allowed to take your payment whether or not they agree to your settlement. If you wanted to settle, you should have sent them a letter with NO check, and then sent payment only AFTER they agreed in writing to the settlement. That would have been honest and up front.

But if you think you have a case, by all means go to court. I'm not a lawyer (though racer is I believe), I don't know it all. Be sure to let us know what happens.

 

[racer72]

I'm not a lawyer (though racer is I believe)

Nope, not a lawyer, a paralegal though with quite a bit of experience on contract law.

 

[ceara19]

I know I should have thought of this before but, my credit is worth more now than $300.

I would be glad to pay a few hundred per incident to have a lawyer represent me in these cases. I personally don't think that it would ever go to trial because of the small amount, that is unless I can prove additional damages.

Any other thoughts out there?

Blake

They are not going to offer any kind of out of court settlement because they know the law is on their side and they will win the case. It won't just cost a feww hundred dollars for YOUR attorney either. You will most likely end up having to pay all of their legal fees too. Corporate lawyers cost thousands.

 

[ccs]

Debt not mine

First of all, they can not prove that this debt is mine. In fact, I've asked for validation of this debt, and they (the collection agency) could only provide me with a hospital invoice which was not signed by me and was not signed by anyone.

The actual hospital admits that I didn't sign and the services were not for me, but my wife and that they sometimes put charges on both spouses credit, without their written permission to do so.

Second, since I didn't sign, or authorize this debt, I can't be held responsible for it or the attorney fees associated with it, other than my own. I find it hard to believe, while not impossible, that a court would find me guilty when I didn't give authorization for this debt, that is unless they are able to claim that it's my debt because of my wife's debt.

Is this so in the State of Colorado? Can they claim that my wife's debt (remember no signed invoice or hospital ticket, etc.) is mine and randomly put it on my credit report?

Seems to me that they are breaking the fair credit reporting act.

Blake

 

[TigerD]

First of all, they can not prove that this debt is mine. In fact, I've asked for validation of this debt, and they (the collection agency) could only provide me with a hospital invoice which was not signed by me and was not signed by anyone.

The invoice is legal validation.

Second, since I didn't sign, or authorize this debt, I can't be held responsible for it or the attorney fees associated with it, other than my own. I find it hard to believe, while not impossible, that a court would find me guilty when I didn't give authorization for this debt, that is unless they are able to claim that it's my debt because of my wife's debt.

The court would find you responsible -- this will be a civil matter.

Is this so in the State of Colorado? Can they claim that my wife's debt (remember no signed invoice or hospital ticket, etc.) is mine and randomly put it on my credit report?

You don't know what they have. You only know that they legally validated the debt. And you aren't happy with that. That is what court is for. If you want to know everything they have, discovery is the time to do it.

Seems to me that they are breaking the fair credit reporting act.

Great, now prove it.

DC

 

[Debt Guy]

Q. The actual hospital admits that I didn't sign and the services were not for me, but my wife

A. Does not matter. The Doctrine of Necessaries makes you liable for the hospital debt of your spouse.

Q. and that they sometimes put charges on both spouses credit,

A. Perfectly legal since you are both legally responsible

Q. without their written permission to do so.

A. Not required.