Overview
The video explains a legal strategy called “restrictive endorsement” that may allow individuals to settle debts for a fraction of the amount owed and have them completely removed from credit reports. The process involves sending specific letters and payments with precise language to creditors, but results and legality vary by state.
What is Restrictive Endorsement?
- Restrictive endorsement is a legal process where you offer a partial payment to creditors with a letter stating the payment satisfies the debt in full.
- This strategy aims to have the debt deleted from all credit reports, not just marked as “settled.”
- Not all U.S. states honor restrictive endorsement; check your local laws before proceeding.
Step-by-Step Process
- Send a preliminary letter (with tracking) to the creditor/collector 30 days before payment, offering a specific amount to settle the account in full.
- Avoid using personal information in the letters; use a PO box or business address if possible.
- After 30 days, send a certified follow-up letter with the check or money order.
- The back of the check or money order must clearly state that endorsing it satisfies the debt in full and requires deletion from credit reports.
- Recommended payment methods include USPS money orders, cashier’s checks, or checks from a business account not easily connected to you.
Disputing with Credit Bureaus
- After the check clears, file a dispute with Experian, Equifax, and TransUnion stating the debt is paid in full.
- Attach supporting documents (letters, checks, proof of delivery) if the initial dispute is rejected.
Important Warnings and Notes
- Do not restart the statute of limitations by making a partial payment outside of this process, as this could “reset” the debt timeline.
- If the dispute fails, consider a lawsuit in small claims court to enforce the removal.
- Using a non-personal bank account or business account can add a layer of protection.
- This is a last-resort strategy after other standard debt validation and dispute methods have failed.
Resources and Support
- Free downloadable restrictive endorsement and dispute letters are available at getdisputletters.com.
- Additional community support is available through the creator’s online group for credit repair discussions and resources.
Recommendations / Advice
- Check your state’s stance on restrictive endorsement before proceeding.
- Use business or third-party addresses and accounts to avoid personal liability and exposure.
- Follow the outlined process exactly; errors may invalidate your efforts.
- Only pursue this if you have funds available to make a reasonable settlement offer.