Oregon says NO way!
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Posted by Robyn (64.12.102.183) on May 23, 2002 at 01:07:31:
In Reply to: isn't there a way to prevent ... posted by Robyn on May 22, 2002 at 21:11:43:
How to settle a debt and negotiate a settlement
http://www.vipcredit.com/howtosettle1.htm I negotiated a settlement with a creditor for less than I owed. The creditor is now suing me for the balance. Is this legal?
Yes! You need to read the following information carefully. Some collection agencies will agree to settle with you for far less than you owe and then turn around and hire another collection agency to collect the difference. However, in many states this is illegal. Once a creditor deposits or cashes a full payment check, even if she strikes out the words payment in full or writes "I don't agree" on the check, she can't come after you for the balance. The states in which this law is enforced: Arkansas
Colorado
Connecticut
Georgia
Kansas
Louisiana
Maine
Michigan
Nebraska
New Jersey
North Carolina
Oregon
Pennsylvania
Texas
Utah
Vermont
Virginia
Washington
Wyoming
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
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