What does the word RECOVERY mean when written on a settlement check?
I received a settlement offer letter from a bank and they said to put the word RECOVERY on the payment along with my account number. Does that word RECOVERY mean the debt is returned to the full amount due? Is it a trick request or OK to put that word (along with PAID IN FULL) on my settlement check per their request? Thank you.
Reply from DebtCollectionAnswers.com:
We checked with debt negotiation expert Michael Bovee, and his take was the same as ours. It's probably just there to make sure the bank routes it through the right department.
What's most important is that you don't pay until you have a written agreement in hand, from the bank, detailing the terms of the settlement. That's crucial.
You may want to listen to our debt settlement podcast for more information about how settlement works.
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