Credit Deletition

[jmichael]

I opened an account for a friend so he was able to get electric in his home. Not knowing (living 300 miles away.) The bill was never paid. Next thing I notice is a collection on my credit. I of course contacted the creditor to settle the debt owed but I would like it deleted off of my credit because I was never notified of the debt prior to it being added to my credit. They agreed. But when I asked them if they could just put that in writing they said they do not have anything they could send me saying that they will delete the negative item on my credit. So I sent them the check saying "Payment for full credit deletion." in the Memo, and on the back below the signature line. I put "Endorser agree's to full credit record deletion in exchange for payment in full."

Now is this legally binding? It was discussed and agreed upon by both parties but being they had nothing they could send me in writing there endorsement should be proof enough.. Right? Also, please keep in mind it is for payment in full. I am not attempting to make an offer in bad faith by sending them a lesser amount that what is owed. I just want to know where I stand legally in the event they decide to back off on there deal and do not make the deletion as agreed.


Any advice would be most helpful...

Regards,

James M.
Mastic, New York

 

[Michael Wechsler]

Originally posted by jmichael
I opened an account for a friend so he was able to get electric in his home. Not knowing (living 300 miles away.) The bill was never paid. Next thing I notice is a collection on my credit. I of course contacted the creditor to settle the debt owed but I would like it deleted off of my credit because I was never notified of the debt prior to it being added to my credit. They agreed. But when I asked them if they could just put that in writing they said they do not have anything they could send me saying that they will delete the negative item on my credit. So I sent them the check saying "Payment for full credit deletion." in the Memo, and on the back below the signature line. I put "Endorser agree's to full credit record deletion in exchange for payment in full."

Now is this legally binding? It was discussed and agreed upon by both parties but being they had nothing they could send me in writing there endorsement should be proof enough.. Right? Also, please keep in mind it is for payment in full. I am not attempting to make an offer in bad faith by sending them a lesser amount that what is owed. I just want to know where I stand legally in the event they decide to back off on there deal and do not make the deletion as agreed.

To begin, why did the utility company have a duty to notify you at your address? Did you give them your address or was your name used at the address where the utilities were provided? If this is the case, then it would seem to be your tough luck and you can understand why you 'loaning your good name' is not usually a good idea -- especially since you ought to wonder how this person got their bad credit rating in the first place!

I don't think the agreement is legally binding because there may have been no contract made. There might have been an 'offer' by you and an 'acceptance' by them but there was no 'consideration' paid. You owed the debt irrespective of any other 'deal' that may have been made. Additionally, unless they agree to back you, this might be a difficult case to prove and would be costly to you to prosecute.

 

[jmichael]

To begin, why did the utility company have a duty to notify you at your address? Did you give them your address or was your name used at the address where the utilities were provided? If this is the case, then it would seem to be your tough luck and you can understand why you 'loaning your good name' is not usually a good idea -- especially since you ought to wonder how this person got their bad credit rating in the first place!

They obviously had both addresses. But keep in mind the collection agency was the one who tarnished my credit not the utility company. (Both in the same I know.) When there was evidence the bill was not getting paid. Immediatly contacted the utility company apologized and said it would be paid in full this week. If it was not to please contact me immediatly and I would make the trip up there or to make a payment over the phone. Also if it was not paid I want the services turned off immediatly. They turned off the services but never contacted me. AND less then a week after the call the collection was put on my credit.


I don't think the agreement is legally binding because there may have been no contract made. There might have been an 'offer' by you and an 'acceptance' by them but there was no 'consideration' paid. You owed the debt irrespective of any other 'deal' that may have been made. Additionally, unless they agree to back you, this might be a difficult case to prove and would be costly to you to prosecute.

I would disagree on this matter there was a verbal contract made and further here in New York my understanding is that by endorsing a check with a stipulation in the memo the check becomes a legally binding contract. Not only did I place a notation in the Memo but I also placed it on the back where the check was obviously endorsed.. Additionally, there are companies who process the checks electronicly and/or automated. In this case I am certain they were aware of the stipulations prior to endoursing the check because they verified the account number also on the check and hand wrote a notation in the memo area. (Nothing relavant to the stipulation.) But relavant that the check was not processed through an automated service.
But if I did want to persue a legal action to force the deletion from my credit would I need to contact the courts in my area or in there area?

Regards,

James

 

[Michael Wechsler]

Originally posted by jmichael
They obviously had both addresses. But keep in mind the collection agency was the one who tarnished my credit not the utility company. (Both in the same I know.) When there was evidence the bill was not getting paid. Immediatly contacted the utility company apologized and said it would be paid in full this week. If it was not to please contact me immediatly and I would make the trip up there or to make a payment over the phone. Also if it was not paid I want the services turned off immediatly. They turned off the services but never contacted me. AND less then a week after the call the collection was put on my credit.

The utility company was responsible for disseminating the information to the collection agency. Did you contact them? If you notified them of a dispute of the debt, then you have a case against both of them and against the collection agency for their misconduct in not stopping the process upon receipt of your notification.

Originally posted by jmichael
I would disagree on this matter there was a verbal contract made and further here in New York my understanding is that by endorsing a check with a stipulation in the memo the check becomes a legally binding contract. Not only did I place a notation in the Memo but I also placed it on the back where the check was obviously endorsed.. Additionally, there are companies who process the checks electronicly and/or automated. In this case I am certain they were aware of the stipulations prior to endoursing the check because they verified the account number also on the check and hand wrote a notation in the memo area. (Nothing relavant to the stipulation.) But relavant that the check was not processed through an automated service.
But if I did want to persue a legal action to force the deletion from my credit would I need to contact the courts in my area or in there area?

I was making an argument with regard to your word against theirs. It is for you to prove that there was a discussion and agreement with regard to settlement of the debt. The problem is there is an urban legend used by many that writing such statements in the memo area regardless of whether a conversation agreeing to settle ever took place. It must and if denied it can be a question of proof. It is always good to have a record of your conversation, e.g. faxing an acknowledgement letter of the stipulation and keeping the fax receipt.