Legal Question

Are you sure you want to send a check to a collection agency, with all your banking info?
In any event i thought that yes if you put oaid in full andit was cashed they could not come after you for more money. Spat, I am not 100% sure so lets waiy for someone who may be sure.

In some states yes and in some states no. Google restrictive endorsement. There is a lot of information plus info from the UCC.

Just writing "PAID IN FULL" on the memo line will not work, as that's all it is - a memo for your reference. It does not create any sort of contractual/binding agreement.

A restrictive endorsement, should you opt to place one on the back side of your check, needs to be very cleverly crafted in order for it to be binding.

Without writing a whole blurb on contracts, I'll just say a restrictive endorement acts as a contract; and one of the main elements of a contract has to do with "valuable consideration."

If you try to induce them into a contract (considering your account paid) by offering something that you were already obligated to do (making said payment), then it's not a real contract since they didn't gain anything above what was already owed [a legal benefit], and you did not incur any further obligations [a legal detriment].

In essence you need to provide some sort of "valuable consideration" above and beyond the original agreement, in order for your contract to have legal merit. Anything tangible, like a peppercorn, that you weren't previously obligated to give them, could constitute sufficient consideration.

For example, your restrictive endorsement could say:
"Tender is hereby made in the amount of X.XX plus one peppercorn as full satisfaction of the account # XXXXXXXX. Receipt and acceptance of this tender shall unconditionally guarantee by the creditor that all obligations hereunder are discharged."

Then, you are giving them "valuable consideration" that was not a part of the original contract, and therefore if they accept it they are bound by your restrictive endorsement. Or else they should not cash the check, and they should mail your peppercorn back to you.

PS I use a peppercorn as my example because there was a Chief Justice of the Supreme Court, Benjamin Cardozo, who once said "Even a peppercorn is sufficient consideration" in regards to a matter of this same sort.

So what should be the "peppercorn"

Your best bet, assuming you are not trying to trick them, is to send a cover letter that says in essence, "this letter confirms our agreement that the account is PAID IN FULL, your cashing of the enclosed check is proof of your acceptance of our agreement".

No I am not trying to trick them. I am going to pay this in full, I just don't want this hanging over my head anymore.

Nice site!

The "paid in full" thing will depend upon your state law generally.