Endorsing Money Orders

Got a question. If you have two different creditors who are using the same collection agency and make out a seperate money order payable to each creditor individually, does the collection agency have the right to apply the payment to the creditor of its choice? If I make a money order out to a creditor and send it to a collection agency and they endorse it over to themselves and apply it to another account, isnt that fraud?

[fulltitle]

Originally Posted by kgod999

Got a question. If you have two different creditors who are using the same collection agency and make out a seperate money order payable to each creditor individually, does the collection agency have the right to apply the payment to the creditor of its choice? If I make a money order out to a creditor and send it to a collection agency and they endorse it over to themselves and apply it to another account, isnt that fraud?

Without Prejudice.
Perhaps mark it "not-negotiable".

[mikah2k]

If you have a prior agreement in place that states "the collector can apply payments as collector sees fit", then disclosure avoids fraud; otherwise, non-disclosure implies fraud.