Internet's first get-out-of-debt community - 128,000 members

gonzo6673 · Posted: Wed May 28, 2008 1:05 pm Subject: refusing payment on account

So here is how this goes according to the guy on radio.

first, get a cashiers check made out to the creditor's name, but no information other than your name.

Then, write on the side of the check "Paid in full",

Then mail to the normal processing center, in plain envelope with no return address.

According to them once they open it you are absolved of the debit? Something to do with refusing payment on the account or cashing the check and accepting the paid in full term?

That sounds too good to be true, so I highly doubt that it is.

Please let me know if you have ever heard of someone doing this and getting away with it. Or is it even legal?

Thanks

PS Great Site!!

Posted: Wed May 28, 2008 2:13 pm Subject:

I have heard something similar to that but the term written on the check was different. More legalese than simply "paid in full." Maybe someone else will have feedback on this!

Posted: Wed May 28, 2008 2:40 pm Subject:

Known as a restrictive endorsement and only works if state statutes allow for it in their code.

Posted: Wed May 28, 2008 2:45 pm Subject:

I've also heard that it will not stand up in court if the creditor decides to fight it.

Posted: Thu May 29, 2008 6:10 am Subject:

Basically an urban legend. Just opening it does not absolve the debt. When I was collecting, our accounting department had a pile of checks like these that would/could not be applied to accounts. These checks just sat there because there was no return address.