Current Newsletter
Collection & Credit Insights
October 2004
Let's Settle This
Periodically we are asked if cashing a check that has a short note “accept as settled in full” in the memo is considered as actually that… full payment of debt. We put this question to one of our experienced attorneys, Matt Paletz, and the following is his response. Keep in mind this is not to be taken as legal advice but as information that could assist you in clarifying an issue that certainly may come up when working with consumers who owe you.
Q. “If I cash this check is the debt settled in full?”
A. “The short answer to this question is you are within your rights to cash/deposit a check, even if its been marked as "paid/settled in full". The reason being is just because a person writes this on their check, absent a separate agreement to do so; it does not mean that it was accepted by you. Moreover, you, as a party receiving the check are not held to be responsible, under the law, to examine the check for this kind of added language.
The legal term for this is called an accord and satisfaction. In essence, you need to enter into an explicit agreement that allows a debtor to settle for less. The check maker needs to specify a dispute and under MI law needs to send you a separate correspondence outlining this dispute. If that does occur, then you may not want to cash/deposit the check until you are prepared to accept those terms or open a dialogue with the debtor to clarify and perhaps ultimately negotiate.
However, I must caution you that there is an argument that can be made against you and is made quite often but is met with limited success. That is that your action (cashing the check) is a manifestation of your acceptance of settlement/payment in full and as such you are bound by your action’.
Please let me know if I can be of further assistance.
Sincerely,
Matthew I. Paletz, Esq.
Leikin, Ingber & Winters, P.C.
I hope this helps you the next time you are looking at a check with the note “consider this settled in full”. You are taking your chances. Keep this article around for review… then the decision is yours.
Tom Oldani
General Manager
PLEASE NOTE THAT OUR JACKSON OFFICE AND ADRIAN OFFICE HAVE MERGED
TO OUR ANN ARBOR OFFICE.
Upcoming Events
Recovery Skills Seminar
October 15, 2004
Credit Professionals of AA
October 12, 2004
Welcome to Our New Clients
- Curves-Saginaw West
- Oral & Facial Surgeons
- Serv Pro
- Onsted State Bank
- Waterford /Milford Oral & Facial Surgeons
Phone Numbers
Client/Sales questions
800-710-4821
Mortgage Dept.
800-684-2738
Customers to pay bills
800-741-6955
Report payments
734-665-6173
Educate Yourself
Summer is over and school has started again. While kids are learning new things, make sure you are too—like the warning signs of too much debt. Below are 10 warning signs of dangerous debt levels:
- You don’t (or can’t) pay more than the minimum payments on your credit cards.
- You have no savings.
- You have more than 3 major credit cards, and are near your limits on all of them.
- You use your credit cards to pay other bills and things you used to pay cash for.
- You’re using more of your total income to pay your debts.
- You don’t know how much you owe on all of your debts.
- Your credit card has been declined.
- You’ve been denied credit.
- Collectors are calling.
- You lie about how much you owe or hide your bills from your spouse or family members.
If any of these statements are true, you might want to adjust your financial strategy. Some tips to help you:
- Set up a realistic budget, and stick to it.
- Don’t use your credit card unless you have the cash to pay it off.
- Don’t open any new credit accounts, shred and throw away new credit card offers you receive in the mail.
- Avoid large and expensive impulse buys. They are much harder to pay off and will cost you more in the long run.
Article reprinted from 2004 Equifax Newsletter
Teach Your Kids about Credit
Did you know:
- The average teen spends over $4000 a year?
- 20% of American teenagers carry 4 or more credit cards?
- 9% of people between 18 & 23 are delinquent on their credit card payments?
Financial responsibility isn’t taught in school, yet it’s one of the most important lessons your kids can learn. Teach them early about money and how to manage it. The following tips can help:
Let them handle small amounts of money from an early age and practice making decisions.
Show them how to do things themselves– make deposits, withdrawals, balance their accounts & spend their money how they want to. Later give them complete control.
Let them make mistakes & learn the consequences of spending foolishly. The best way to learn money really doesn’t grow on trees is to buy something new and not have money for something else later.
Set limits– let them have enough money to learn important lessons, but not so much they think it’s unlimited.
Article reprinted from 2004 Equifax Newsletter
High Payment of the Month!
Our high payment of the month honors go to Jack Kramer. He collected $3,385.00 from a local medical facility. Keep up the great work Jack and congratulations.
Credit Professionals of Ann Arbor meeting
CPAA will meet at Weber’s Inn on Tuesday, October 12, 2004 from 7:30am to 9:00am. The featured speaker will be Teresa Mann. The topic of discussion will be “Self Defense: How to Not Become a Victim.”
Meeting fee is $10.00. Please contact Rebecca Burk at 734-994-6928 for reservations.
Kick those uncollectable
accounts out of your office
& into ours!!!
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