If a collection agency cashes a check with a contract on the back is it considered a written contract in Colo

Question

I heard that if you send them a check and write on the back ("accepting this check is evidence that the transaction is complete and this charge will deleted from my credit") Is this considered a written contract in colorado and do they have to stand behind it? Will they delete it from your credit report?

Answer 1

No it is not binding on their part. This has to deal with section 3-311 of the UCC(Uniform Commercial Code). Hopefully you did not do this, because by sending a payment you may have caused yourself more problems.

There is something called the Statute of Limitations. This is the time in which a creditor can take legal action against you to get you to pay the money. Since you said Colorado, the SOL for CO is 3 years for Credit Card(Open Ended Accounts), and 6 for all other types. So if you had not made a payment in that time, they could no longer come after you for payment. Now, once you make a payment it reset the SOL.

The second time is that negative information can only be reported on your credit report for 7 years from the date of the negative item, such as the charge-off. So unless you have paid them off in full you have reset the time for this also.

Answer 2

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

Answer 3

I have herd of such things "such" as if you put paid in full on the bottom then they go by that and it is paid in full then..I dont really think it applys to credit deletions I am not a lawyer.