Western Capital - The Truth

A consumer identifying herself as Ms. Adamson was recently given the following bad advice from Western Capital CEO Robert Paisola relative to a collection account of hers.

"You send them a payment for 25.00 to the agency. If they cash it (make sure it is a money order) then that is a form of ACCEPTANCE of the payment agreement."

A money order, check, etc., is not an agreement, it is consideration. Without an actual agreement or novation to replace her original credit agreement, the $25.00 she sends the collection agency is nothing more than a payment towards her balance.

Here's what else could result from this working single mother's payment if she follows Western Capital CEO Robert Paisola's bad advice.

1. If the limitions period for filing suit on the debt has expired in her jurisdiction, she could very well re-set that limitations period by making payment. This would effectively remove an affirmative defense she may have had if they were to sue her.

2. The payment can form the basis for an account stated. Since many collection agencies lack back-up (media) for an account they are often hesitant to sue. However, lacking such media isn't so much an issue if they were to sue on an account stated, the basis of which would be her admission of the obligation by virtue of her payment.

Simply another example of Western Capital CEO Robert Paisola's lack of legal knowledge.