Pay for delete

[mountaindews]

I want to send a contract to one of the CA's for a pay for delete. I have the contract, but am I suppose to write another letter to explain the contract or do I just send the contract out...or how do I go about just doing a pay for delete in general. LOL Sorry I should have just asked that to begin with.

[Trish]

If you are going to try a PFD, the first thing you need to make sure of is if the your state's and the CA's state laws honor restrictive endorsements.

You can find this by looking at the U.C.C. to make sure.

Here is a sample letter:
(this is one that I used for an OC. The CA was reporting but the debt was only assigned.....so I wanted to pay the OC and make sure they didn't send the payment to the CA - otherwise the CA could report it as paid and I would've had a harder time getting a delete)

*Just be sure to modify it to fit your situation

Date
Your name
Your addy

OC Name
OC Addy

Re: Acct # xxxxxxxxxxxx

To Whom It May Concern:

I am sending this payment via certified mail #xxxx xxxx xxxx xxxx xxxx to ensure that you receive it.
Enclosed please find personal check #xxxx from < your name > in the amount of $xxx.xx made payable to OC.

By cashing this check OC agrees to the following terms:

1. Acct # xxxxxxxxx is considered paid in full.

2. Remittance is payable ONLY to OC and may not be signed over or transferred to < CA name > or any third party collection agency.

3. The debt will be recalled from < CA name > and any collection activity will cease and desist.

If these terms are agreeable to the aforementioned parties, please accept the enclosed check in the amount of $xxx.xx.

Please note that cashing the enclosed check will bind you to the terms set forth in this letter.



Best Regards,

Your name

*Then on the back of the check under the endorsement area, I put "For Deposit Only to the Account of OC" (That way they cannot transfer the payment to the CA)

Staple the check to the letter and make a photo copy.
This way you have solid proof that if they received that check, they received the letter as well.

Once the check has cleared, give it about 10 days. If you haven't heard anything from them or your TL hasn't been deleted......then you need to contact them and find out why it hasn't been removed yet.


I still plan on posting a thread on this with a little more info on restrictive endorsements. Sorry it has taken me so long. I've just been super busy lately.

Hope that helps.

[Trish]

If you would rather try a contract (basically writing up the same letter but stating that you will pay them once they agree and adding an area for their signature).......you can do that and it will hold up since that is a contract BUT from what I've read, OCs and CAs are more likely to agree if they see the money right in front of them.

You can also use a bank MO/cashier's check as payment if you wish (be sure to still put the RE on the back). To a CA or OC, that's even better because it's not just a promise to pay.........it's guaranteed funds.

[mountaindews]

Thanks Trish, but what if it is a check collect place, but is considered a collection agaency? Does that make a difference? I am assuming while I was married we wrote a check to a business and it bounced and then that place sent it to this CA...so how do I find out if this is all legal in my state you said UCC?? what is that? and where can I find out if they own the debt now or if they are just collecting?

[Trish]

Originally Posted by mountaindews

Thanks Trish, but what if it is a check collect place, but is considered a collection agaency? Does that make a difference? I am assuming while I was married we wrote a check to a business and it bounced and then that place sent it to this CA...so how do I find out if this is all legal in my state you said UCC?? what is that? and where can I find out if they own the debt now or if they are just collecting?

I believe that is still a CA. Find out who the OC is if you can and then get in touch with them. Ask if you can pay them (instead of the CA). If they say yes, get their address and tell them you will send it right away (don't even bring up pfd, just get the payment address). If they say no and that the debt has been sold and NOT assigned to the CA.......then you're going to have to deal with them and go by the CA's state.

Here is the list of states that REs hold up in:

Arkansas
Colorado
Connecticut
Georgia
Kansas
Louisiana
Maine
Michigan
Nebraska
New Jersey
North Carolina
Oregon
Pennsylvania
Texas
Utah
Vermont
Virginia
Washington
Wyoming


Certain states have modified this law.
In the following states, if a creditor cashes a full payment check and explicitly retains their right to sue you by adding
"under protest" or" without prejudice" along with their endorsement, then they can come after you for the remaining balance. *this is if you plan on doing a pfd for LESS than the amount owed

Those exact words must be used.
If they write "without recourse," on the check,or other indication that is partial payment, it is not enough.
If they communicate to you verbally or in writing , seperate from the check itself, that is not sufficient either.
They MUST use the EXACT words above, on the check itself.

States following the modified law are:

Alabama
Delaware
Massachusetts
Minnesota
Missouri
New Hampshire
New York
Ohio
Rhode Island
South Carolina
South Dakota
West Virginia
Wisconsin

[jlyriq]

Trish, Would a pay for delete letter to a OC work the same way? Would i just modify the letter to state that it will be removed for the CRA's?

[jlyriq]

nevermind I didn't fully read :-)