Check: Paid In Full

Many creditors can be disrespectful and some are even dishonest. Some Creditors claim that their records indicate that you are indebted for more that you really are. All of your records show that you owe less than what your creditor claims. There are some sure fire ways to deal with a dishonest creditor.

First, you should contact the creditor in an effort to settle your account. When you contact them you should inform them that your records indicate you do not owe as much as they are claiming. You should offer to forward them a copy of all of your records that will substantiate your claim. If you spoke with a representative by telephone it would be in your best interest follow up with letter recapping your conversation. Once this information is obtained and reviewed most creditors will be willing to settle this dispute for a reasonable amount.

Any agreement that is reached should be in writing. This writing could be a settlement contract, letter from the creditor, Memo from the creditor but it should include the amount and terms agreed upon. The Uniform Commercial Code (UCC) will provide you protection if you write “Paid in Full” on the memo line of the check of your last payment.

If no agreement can be reached go a head and send a check as an settlement offer. Again, make sure you write “full and final payment” “Paid in full” or “satisfaction in full.” Send a letter with the check redisputing the amount is owed and informing them that the enclosed check is an offer full settlement of the debts. UCC 3-311 provides that the debt will legally discharged if the creditor cash or deposit the check. To discharge the debt UCC 3-311 requires a bona fide dispute of the amount of the debt. So, make sure you document your dispute in your letters.

Each state have their own UCC laws most are as provided in this article but be sure to check your state laws. Always keep good records concerning an credit account. And, aways assume that telephone conversations with creditors are being recorded.

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