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Settlement Payment Question

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  • Settlement Payment Question

    "I am in the process of negotiating a settlement with a collection agency.
    I don't want the collection agency to agree to settle with me for less than they say I owe, and then turn around and hire another collection agency to collect the difference. I read that in most states this is illegal. But I am in one of the states where it is legal.

    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.
    •New Hampshire
    •New York
    •Rhode Island
    •South Carolina
    •South Dakota
    •West Virginia

    So my quesion is; is there a clause I should put in my settlement offer or should I write someting on the settlement payment money order when I send it to them?

  • #2
    There is no incentive to not take all that they can from you and then sell the remaining balance on the street to the highest bidder. That's primarily the reason to fight. Unless you beat the bastards they don't go away. Paying anything shows you have a willingness and ability to pay. Who walks away from that?