Re: Paid collections vs. unpaid debt

Posted by Bill Bauer on December 08, 2001 at 09:52:37:

In Reply to: Re: Paid collections vs. unpaid debt posted by JJ on December 07, 2001 at 22:21:35:

You are making a big mistake paying off on collections and charge offs. Once you pay them off you lose all protection under FDCPA since no one is trying to collect from you and then you can't easily get them off your credit reports. If you feel that you must pay them off for personal morality reasons then be sure to use a properly constructed restrictive endorsement on your final money order to pay them off with. Never use a check to make a payment to a collector. Always do it by money order. A properly constructed restrictive endorsement establishes a contractual obligation to remove all derogatory trade lines from your credit report upon cashing of the check. If they fail to do so then you can sue for violation of contract and win.

But making them validate the debt usually results in their violating your rights and gives you a way to negate the debt entirely and make them take it off the credit reports too. So that's a much better way to go. That's what I do is to teach people how to stand up and fight for their rights and win against collection agencies.

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