Legal Question in Credit and Debt Law in Pennsylvania
Bindability of credit memo entries on checks
I recently paid a collection account in full which is almost 7 yrs old. In the memo section of the check I wrote " Account paid in full - upon deposit of this check all negative information will be removed from credit files. " The creditor deposited the check, and refuses to remove the negative information. Has the creditor entered into a legal agreement with me when they deposited the check, and do I have legal recourse?
1 Answer from Attorneys
Re: Bindability of credit memo entries on checks
You are thinking of an accord and satisfaction situation, which only applies in the event of a bona fide dispute. Since the amount of the debt is not in dispute, you cannot "satisfy" the claim, or any part of it with an "accord", read, agreement.
Many people believe that just because they write something on a check, it creates a contract. This is not always true. By the way, you may luck out anyway, because a creditor can only report adverse information on a credit report for a maximum of seven years anyway. Therefore, the adverse reference would have to be removed by operation of law after that period.
Lawrence Rubin
Rubin & Todaro
337 W State St
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