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Collections Law/Westcap Endorsement Method

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Expert: Creditwrench - 5/1/2008


Question
I am the person that used your advice in settling a debt with a credit card company.  See your blog dated 2/1/2008,
Subject: Westcap Endorsement Method.

As previously reported the attorney for the credit card company did deposit the cashier's check with the endorsement and they have cleared the outstanding debt.  However, I just received a letter from them referencing the now closed account and their subsequent credit reporting.  Their letter states the following:
"your account will be reported as a settled account, legally paid in full for less than the full balance."  They go on to state that any future credit balances on the account will be their property and that any new or third-party charges posted to the account will be my responsibility.  They also say I will be receiving a form 1099-C, I assume for the difference in their original total and our settled amount.

What is the logical next step for me or is this the best outcome I can expect?

Answer
What is on the contract you put on the back of the check is what they agreed to when they signed it and cashed it. So what does the contract have to say about that? Yes, I could tell you easily but I want you to know for sure what the contract says about reporting to credit bureaus.

If they break the contract in any way the answer is to sue them on the contract. So did they break any covenant of the contract? You tell me.

And you don't need a lawyer to file the lawsuit. You can easily do it without a lawyer. No problem at all.  

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Creditwrench

Expertise

Debt Collections law, Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), federal law, how to properly answer court summons for collection cases, how to prepare federal cases against debt collectors, how to deal with debt collection phone calls.

Experience

I've been an active consumer advocate for more than 40 years and have helped hundreds of people win cases against debt collectors as well as helping them defeat demands for summary judgment lodged against them by banks, debt collectors and defeat mortgage foreclosures and keep their homes.

Education/Credentials
Paralegal courses for the most part.
I have been teaching people how to deal with judgments, mortgage foreclosures and other such problems both on and off the internet for many, many years. I am a Richard Cornforth information provider ever since 2000 and worked with many other organizations and causes since 1980. I was Oklahoma State Chairman for the nationwide drive to defeat the Constitutional Convention which was proposed by various factions within our federal government such as the Council of State Governments and the National Organization of State Governors who were working hard to organize a Constitutional Convention to be held in 1995 for the purpose of rewriting our American Constitution to be more acceptable to the United Nations. I worked with Senator Charles Duke of Colorado and Senator Don Rogers of California and many others across the nation to keep them from getting the number of delegate states required to lawfully hold a Con-Con and we were successful. I have worked with many other legislative issues in Oklahoma and have always been very successful.

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