Old Settlement Balances

[lizdoda]

What is the name of your state? CA
Hi I have alot of outstanding debts with different companies and I have been working on settlement amount with them. All the settlemt amount were on a "if paid by" condition. I was not able to pay them by the time they gave me. I am now about to get the funds to pay these different collection companies and wanted to know if it was possible to send them the negotiated balance due and how to get these companies to accept these negotiated settlements as payment in full. One company wanted to change the 60 o/o settlement to 70 o/o because of the time that has passed. Does anyone know how to get this done. Can I write on the check that if the payment is cashed the collector accepts it as payment in full for the balance, and will this be legally binding so that they no longer come after me for the other portion of the amount due?

 

[Tayla]

How old are these debts? Have you paid on them intermittently? Have they passed the SOL for collections? Most collection agencies will use tactics that are not kosher to get the funds, be sure to get all correspondence in writing.
If you must pay , refrain from using your own personal checks. Collection agencies have a field day once they get your checking account number. Use Traveler checks, pay via money order...Try not to sign any agreement with them until you reviewed thru a legal aide your rights and ramifications.

 

[nissandave]

"Can I write on the check that if the payment is cashed the collector accepts it as payment in full for the balance, and will this be legally binding so that they no longer come after me for the other portion of the amount due?"

Yes, you can do this, but it will not do any good. The creditor can legally pursue you for the original debt remaining. In most credit contracts, this is covered where it says that the creditor may accept partial payments without waiving and/or compromising their rights to recover the remaining balances.

 

[Ladynred]

Sorry Dave, but that's not entirely true. In some states, restrictive endorsements and accord and satisfaction IS upheld and legal, and there's not a damn thing the collection agency can do about it. CA is one of those states that upholds A&S BUT the procedure MUST be followed in full - you can't just write 'paid in full' and expect it to work.

I'm agreeing with Tayla's line of though. CA has a short SOL of 4 years and paying them anything if the SOL has run out would be a huge mistake.

 

[nissandave]

What if, and I know it is a big IF, the original contract specifically states that the creditor may accept partial payment at any time without waiving their rights for the remaining amount? I know this statement is found in many credit agreements now, so I would imagine if this was a recently initiated credit agreement, then it would be in there. The question is, with the states having those laws, which would prevail? My concern would be that the debtor accepted the agreement with that stipulation in it. Would this be a factor in this case?

 

[Ladynred]

Credit card agreements say LOTS of things, that does not mean that any clause is enforceable in every state. If they sue, they're going to have to deal with the laws of the state where that person resides.