Will sending a creditor a check with a conditioned acceptance work?
I came across this article online and I'm really trying to better my credit due to old debt (nearly 3 years old). It talks about sending a check with a conditioned acceptance written where it must be endorse along with a notorized letter; it implies that this would make it so that the offer is likely to be accepted and if they take the money they have legally agreed to the terms talked about below right? This would successfully return the debt from a negative status to a neutral status would it not?
If it makes a difference I'm paying the full amount so they should/would likely be more tempted to accept it.
Here's the article (Credit Repair Do It Yourself)
This is easily performed by writing a letter to any creditor and submitting a payment under restricted endorsement. How this works is you write a check to the creditor for the amount you are willing to settle for and on the back of the check where the creditor must endorse the check to get paid you write:
If paid, in full settlement of disputed debt and subject to conditions of Settlement Offer dated xx-xx-2008.
You will need to send a letter of settlement to the creditor and attach the check to the letter. Assume it is to Ford Credit use the following:
xx-xx-2007
Ford Credit
RE: account # 1000676 Sam Jones, SS# 555-55-5555
This letter is an offer of settlement and full satisfaction of all amounts claimed by Ford Credit. I dispute the validity of the debt amount claimed and offer to pay you $xxx.00 in settlement of this disputed debt. I make this offer conditioned upon your promise to remove any negative report to any credit bureau for this account #1000676. You may accept this offer by presenting my attached check for the settlement amount.
Any advice will help. I've made my mistakes but I need to do something to help with the bills now and my huge interest rate (29%) on my car isn't working anymore. I can afford it but the car is getting older and need to be upgraded before it cost me more in repairs, so better credit for a new car is my best bet!