Helpful Info on those interested in settling
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Posted by joanne (217.162.250.103) on June 04, 2002 at 21:58:43:
I found this on creditinfo.com 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 include: 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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