Legal Question in Credit and Debt Law in Missouri

Re: Legal document

You are attempting to rely on the doctrine of accord and satisfaction. While this works, in a small number of cases, the facts have to fit the situation.

First, there has to be a good faith dispute about the amount you owe, and its collectability in court. In other words, there have to be allegations that the credit card company has overcharged you or acted inappropriately in some way that would give you a legal defense to their claims for payment.

Second, you have to notify the credit card company in writing, by letter, that accompanies the payment, that you are disputing the amount owed, that you are attempting to work out a settlement, and that in so doing, you are transmitting an amount that you feel fairly and accurately estimates your actual obligation. The annotations you placed on the check are also key, but not magic words that automatically get your out of hot water.

Finally, the company has to receive the letter (which is why you send it certified, return receipt requested) and has to accept your check and negotiate it.

If it does so (even if it places a restrictive endorsement on the check, as many do), then many courts (especially Missouri courts) would hold that the debt was extinguished by accord and satisfaction.

However, lets say you owe $5,000. Lets suppose you send your check in the regular envelope for $50 and say "paid in full" -- does that simply wipe out the balance? No, because you have not established a good faith dispute about the amount, and secondly, your $50 is nowhere near the amount of the actual debt which was $5000. If you sent $4000, it might come a little closer, but there are still courts that would not let you get by with it because the credit card bill is a "liquidated claim" (meaning, for an amount that is certain and definite) whereas the doctrine is normally meant to apply to an unliquidated claim (meaning one where there is some uncertainty about how much is owed).

Some credit card companies (First Bank, Bank One, etc.) tend to be very aggressive and will sue you if you stop paying.

If indeed your problem is mounting bills, my best advice is the Consumer Credit Counseling Service in your town or county. They have the resources and abilities to help people who have consumer debt problems find answers.

Good luck.