Legal Question in Credit and Debt Law in New Jersey

paid in full check endorsement

In paying a balance due medical bill I attached a copy of the insurance co's. EOB as well as a letter explaning why I was paying only what I was. (after check payment there was a balance of $52.00) The insurance EOB, which the hospital received in Oct stated that they are paying the reasonable and customary and please provide details if you want rest paid. Hospital never did. I paid what the insurance out and out disallowed with a letter saying since you did not provide additional information - please consider this payment in full. I marked the memo section on the front of the check paid in full and also on the top of the back where the endorsement goes I marked paid in full. The hospital tells me that this does not mean anything, I still owe. I know a few years ago when you marked a check paid in full, it meant paid in full. Is this still the case? Can you provide NJ statutue number? I did not arbitrarilly pay a certain amount, I had reason and provided an explanation. Please advise.


Asked on 2/22/02, 2:40 pm

1 Answer from Attorneys
Glen Chulsky Law Office of Glen H. Chulsky

Re: paid in full check endorsement

It sounds like what you are referring to is called an Accord and Satisfaction. For the most part that is when you tender a check as full satisfaction and there was a bona fide dispute with the claim. SEE NJSA 12A:3-311. If you need any further help, you can contact me for a free initial consultation.

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Answered on 2/22/02, 3:41 pm


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