From Collector: Satisfaction Denied

How to deal with consumer checks stating the account is “paid in full.”

6/12/2018 8:00 AM

Collector MagazineNewsCompliance
From Collector: Satisfaction Denied

You’ve heard the rumor, but is it really true that a consumer can write “paid in full” or some other related phrase on a check, and actually satisfy the debt for a lesser amount if the check is cashed? The short answer is yes—but the longer answer is bit more complicated, ACA International Compliance Analyst Laura Dadd writes in the May issue of Collector magazine.

Debt collectors who process checks must be aware of how to handle a consumer’s check stating “paid in full” or a letter along with the check stating the same.

When a check with this declaration is received and cashed, in certain conditions this can satisfy the debt. This situation is known legally as accord and satisfaction.

This helpful article includes an overview of how to recognize an accord and satisfaction scenario, how to handle such checks and how to establish safe harbor protections.

Subscriptions to the Collector magazine digital edition and email notifications for each new issue are available for ACA International members by logging in to ACA International’s website here. Members and nonmembers can also purchase a print subscription. Nonmembers can create a guest profile on ACA’s website to subscribe to available publications.

Follow ACA International on Twitter @ACAIntl and @acacollector, Facebook and request to join our LinkedIn group for news and event updates. ACA International members are welcome to submit news items for possible publication to comm@acainternational.org. Visit our publications page for news submission guidelines and subscriptions to ACA Daily, Collector magazine and Pulse. Advertising is available for companies wishing to promote their products or services. Be sure to visit the ACA Events Calendar on the Education and Training website to view our listing of upcoming CORE Curriculum and Hot Topic seminars featuring critical educational opportunities for your company.

Subscribe to ACA Daily NEWSROOM

Loading...

Loading...


.