I have a client (now he’s my BANKRUPTCY client, since this happened) in a suit on a credit card with BOA. Prior to suit being filed, my client sent a check for about 20% of the balance containing a notation that read “[acct number], acct now settled.
cannot collect if cashed” along with a letter clearly stating the letter was an offer of settlement.     BOA negotiated the check then sued my client. I filed a defense of res judicata alleging transaction
(settlement) seeking to have the case dismissed. BOAs response: The card member agreement allows BOA to negotiate checks
with restrictive notations without prejudice to their rights to collect the remaining balance.

Related posts:

1. Debt settlement companies and credit repair schemes
2. Cosigner is on the credit card
3. statute of limitations on credit card debt
4. Suing because no bankruptcy stay
5. Paying taxes with credit card before filing bankruptcy