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Californians get a special break on full payment laws due to a legal loophole.

California lets creditors cross out the full payment language and sue you for the balance. However, when they passed this law, they also passed a separate law allowing California debtors to get around it. (Don’t ask me why). Getting around this law requires specific steps and language. To use it, this procedure must be followed exactly.

1. Send a letter to the creditor stating that you intend to send a full payment check. Sample letter:
   

   March 13, 1998Account Number: XXX-XX-9990 Dear Mr. Rip-Off Artist This letter concerns the money I owe you. For the past three months I have received bills from you stating that I owe $1000 for shoddy furniture which you refused to replace or repair. Because of the incredibly inferior condition of the merchandise I have received, I feel I owe you no more than $200. It is obvious that there is a good faith dispute over this bill. To settle this debt I will send you a check for $200 with a restrictive endorsement and if you cash that check it will constitute an accord and satisfaction. In other words, you will receive from me a check that states “cashing of this check constitutes payment in full.” If you cash this check, that check will take care of what I owe you. Sincerely, Ms. Outraged Customer

2. Wait 15-90 days to give the creditor time to object
3. Send the check with a letter stating that the check constitutes payment in full. Here is the letter:
   

   May 1, 1999Account Number: XXX-XX-9990 Dear Mr. Rip-Off Artist Enclosed is a check for $200 to cover the balance of Account Number XXX-XX-9990. This check is tendered in accordance with my letter of March 13, 1998. If you cash this check, you agree that my debt is satisfied in full. Sincerely, Ms. Outraged Customer

4. Important: Write on the bottom of the check on the front along the top or bottom the exact language you used in the second letter “This check is tendered in accordance with my letter of _______ (date). If you cash this check you agree that my debt is paid in full.”