What are my options if a settlement payment to a credit card issuer is not timely received?

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What are my options if a settlement payment to a credit card issuer is not timely received?

I have been in constant communication with a credit card issuer for the past few months to work out an agreed upon settlement. This was finalized last week and I received the settlement letter that stated pay XX amount on or before YY date. I sent the certified check via fedex and have proof of delivery 1 day prior to YY date. But I called the issuer numerous times for the past 2 days and they have not officially received the check. So they will not confirm whether it will be accepted as on-time. If not on-time, the letter is invalid and the check just goes to the original balance. What are my options?

Asked on April 15, 2011 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

IF you have proof of *delivery* you can hold them to the agreement. In that case, you've fulfilled your obligations under the agreement; the other party does *not* have the right to not process or acknowledge the check (whether deliberately or through negligence--e.g. someone mishandling it at the office) to get out of the agreement when you've honored your terms. That means if they try to take action against you, you could raise your performance under the agreement as a defense, or even base a suit or legal action against them on it.

If all you can prove is that you sent the payment, your position is not as strong; sending does not prove the fact or timing of delivery. You could still raise the argument, but you're not in as good a shape.


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