The Westcap check endorsement method of paying debts in order to keep them from ruining your credit ratings. If you pay the debt then collectors and creditors will mark your credit bureau files as a paid chargeoff or a settled for less collection account or
any one of several other equally derogatory notations that will be a severe blemish on your credit ratings for a long time, maybe up to 7 years
or more if you are not careful and do not know your rights. There are several steps you need to take to learn about your rights and how to deal
with collection agencies and creditors alike. I will put some links to great resources for learning at the bottom of this page.

Another creditwrench suggestion.. Go to Office Max and have a rubber stamp made (make sure that it will fit on the back of a cashiers check size) that says:

CASHING OF THIS CHECK REPRESENTS PAYMENT IN FULL
TO WHOM THE CHECK WAS ISSUED. CREDITOR AND/OR ITS
ASSIGNEE, AGENCY, COURT, LAWFIRM AGREE TO REMOVE
ANY AND ALL DEROGATORY INFORMATION PREVIOUSLY
REPORTED AGAINST SAID ACCOUNT BY SAID FIRM AND BY
SAID FIRMS ORIGINAL CLIENT AND CREDITOR WITHIN
10 DAYS FROM THE DATE OF TENDER. TENDERING OF THIS
INSTRUMENT SHALL INDICATE ACCEPTANCE OF THESE
AMENDED TERMS OF THE CARDHOLDER AGREEMENT
BETWEEN THE PARTIES. VOID IF RIGHTS RESERVED



This stamp must not be in all caps and it must be in 6 point type and no larger. If it does not exactly meet those requirements it will never fit on any
check or money order. As it is it can only be used on the large size bank certified cashier's check or one of the large sized grocery store money
orders. It will not fit on a U.S. Postal Money order nor will it fit on the small personal checks.

Some folks have successfully used a laser printer to put the wording on checks. This stamp is very large and will measure 2 inches by 3 1/2 inches
and will usually cost about $40.00. I do have one of these stamps and I often "rent" it for $5.00 per usage. It is especially useful in helping one to
get home mortgage financing accomplished. This stamp is the most valuable weapon that you will ever own.

NEVER PAY A COLLECTION AGENCY. LAW FIRM OR COURT JUDGEMENT UNLESS THIS IS STAMPED ON THE BACK OF YOUR CHECK!

This gives you the "slam dunk" proof of the amendment and agreement. The bottom line is if they cash the check, the deal is done, and then it is simply a matter of forcing compliance to the agreement. On top of that, if they refuse the check in some states they may lose the right to collect.

There is a lot of talk these days about such endorsements. Some folks talk about Accord & Satisfaction and others talk about restrictive endorsements. This is a contractual agreement and must not be confused with either of the first two which are agreements to settle for less than the full amount while this endorsement is used when the debt is going to be paid in full.

It is also not recommended as a means to credit repair all by itself. Many people might think that this is a great credit repair trick but such is not the case.
This method is intended to be used in cases where a lender demands that all outstanding debts on a persons credit report be paid before the loan will be granted. Furthermore, when using this method one should have a prior written statement from the creditor or debt collector that payment of some stipulated amount will pay the account in full if at all possible. In any event, one must also prepare a cover letter plainly stating the conditions of the payoff and also having a copy of the exact wording of the stamp in bold lettering.  Some folks might think that such an endorsement might be used to pay them a lesser amount than that which is owed and thereby escape paying the rest of what is owed. Doing that is fraud. 

Also, using the above can, under certain circumstances actually lower your FICO scores. If you are trying to buy a house that is going to happen anyway for a while. In that case what happens to your FICO score is not nearly so important to you at the moment. What is important to you is getting your house and you will worry about FICO as time goes on.  Why credit repair can actually lower your credit scores is a topic for another discussion but believe me it can do just that.


LINKS Section
One of the first things you should do when learning your rights and how to deal with bill collectors is to visit regularly at my Creditwrench message board where you can ask questions about your problems and get answers that you can rely on to help you get out of the mess you are in.