Associated Recovery Services Settlement

[airahcaz]

I have settled a Citi Cards debt via ARS (Associated Recovery Services) for 25% - I am about to send my first payment by my bank's online banking bill pay service.

I've been told and have read that cashiers check's can be lost, hard to track, same with money orders, and paying via my bank, I'll have permanent records.

Should I be concerned with this verbiage on the ARS statement, or is this just if I had allowed them to directly debit my account, which clearly I am not doing:

"NOTICE OF ELICTRONIC CHECKPROCESSING:

We reserve the right to process checks electronically by transmitting the routing, account, and check number to the bank. By submitting a check, you authorize us to initiate an electronic debit from your account. A returned check may be collected electronically if it is returned for insufficient funds."

[IamOld]

Hi - First, NEVER send cashier's checks - if they're lost they cannot be stopped (I learned that almost the hard way).

What that verbiage means is this - that (depending on how your bank's billpay works) if your bank basically writes a check on your account (some actually issue checks on the bank's account) and mails it, when ARS gets it, they can convert it to an ACH withdrawal FOR THAT AMOUNT ONLY. This is routine with many places - I have Chase Auto Finance and they do it too.

OR send money order from Post Office via USPS Priority Mail - it has electronic tracking OR certified return receipt.

[malf1204]

Make sure the verbiage stated that a payment of 25% PAYS THE ACCOUNT IN FULL and it will not be sold or transferred to another party. There have been many cases where they collect 25% on a debt they bought for .05% and then sold the remain 75% to another collection agency who starts all over.

[IamOld]

EXCELLENT POINT!!! from Malf.

Airahcaz - I would write it malf's verbiage on your check as well.

[airahcaz]

Hi - First, NEVER send cashier's checks - if they're lost they cannot be stopped (I learned that almost the hard way).

What that verbiage means is this - that (depending on how your bank's billpay works) if your bank basically writes a check on your account (some actually issue checks on the bank's account) and mails it, when ARS gets it, they can convert it to an ACH withdrawal FOR THAT AMOUNT ONLY. This is routine with many places - I have Chase Auto Finance and they do it too.

OR send money order from Post Office via USPS Priority Mail - it has electronic tracking OR certified return receipt.

I'd like to do bill pay for a variety of reasons and convenience - I'll never be able to able down a half dozen or so money orders years from now should ARS come up with some BS, with two kids etc, yes, my own fault - and so was mainly concerned if they could take out further amounts

[IamOld]

I'd like to do bill pay for a variety of reasons and convenience - I'll never be able to able down a half dozen or so money orders years from now should ARS come up with some BS, with two kids etc, yes, my own fault - and so was mainly concerned if they could take out further amounts

I perfectly understand - LEGALLY no they cannot - however, do they already know where you bank...do you want them to know? If it doesn't matter than billpay is ok. ANY OTHER AMOUNT DEDUCTED FROM YOUR ACCT BY THEM IS FRAUD period.

[airahcaz]

Make sure the verbiage stated that a payment of 25% PAYS THE ACCOUNT IN FULL and it will not be sold or transferred to another party. There have been many cases where they collect 25% on a debt they bought for .05% and then sold the remain 75% to another collection agency who starts all over.

Thanks for that, my lawyer negotiated the settlement, so she will take care of the verbiage, but more than 1 lawyer, and seemingly folks here and other boards, differ on whether to pay via cashiers, MO, or bill-pay/physical check from your checking account.

[IamOld]

If your lawyer negotiated this for you, than there's nothing to fear!!! I would just stay away from cashier's checks because they cannot be stopped...so if they're lost they're lost.

[malf1204]

Can you do Western Union?

[frogger]

There is nothing wrong with using your regular checking account to do this. All they are stating is that they are going to turn your check into an ach payment. You still have every right with this type of transaction as you do with everything else.

The big thing an ach payment does for the creditor is it can eliminate a trip to deposit the paper document, for it can be done electronically. The other thing to consider is that an ach payment goes to the top of the line to get paid. It gets paid before any paper check.

No worries. Just make sure that your attorney has done his job.

[airahcaz]

Can you do Western Union?

I suppose I can, by why pay and go through that expense?

[airahcaz]

Thanks IamOld and frogger and all for taking the time to add clarity - I appreciate it

One last thing - ARS sent the offer with their letterhead and address, but the payment voucher at the bottom states to send payment to Citibank - so I will make it payable to Citibank as recipient, with my Citi CC # as the account #, and put the ARS # in the memo. Interestingly, both in the same town:

ASSOCIATED RECOVERY SYSTEMS
A DIVISION OF ARS NATIONAL SERVICES
P.O. BOX 469046
ESCONDIDO, CA 92046-9046


CITIBANK
PO BOX 469100
ESCONDIDO, CA 92046-9100