If you owe a debt, you may be discouraged to discover you are constantly called and harassed by someone collecting the funds. Unfortunately, this can be frustrating for many, as you may be inundated with phone calls and knocks on your door. As such, you may do anything to deter them from contacting you, such as writing a post-dated check. However, if the collector cashes this check before the date, it can cause problems. Keep reading to discover more about these circumstances and how a California debt collection harassment lawyer can assist you through these challenging times.
Can a Debt Collector Ask for a Post-Dated Check?
It’s not uncommon for those in debt to give a collector a post-dated check. Essentially, this means you are giving a collector a check in anticipation of the funds you will receive at a later date. Once the date has arrived, they can cash the check as there will be sufficient funds in the account. Generally, people post-date checks for the date they will receive payment from their employer.
Debt collectors are allowed to solicit post-dated checks from those they are collecting from. However, they are limited by the Fair Debt Collection Practices Act (FDCPA) as to how they can ask you for this check. Generally, they cannot threaten legal action if you do not write them a check or if it bounces.
What Should I Do if They Cash the Check Early?
Though you may have the word of the collector, they may not keep their promise to wait until the date of the check to cash it. As such, the check may bounce, and you may incur hefty fees from your bank.
Generally, it’s best to avoid giving a debt collector a post-dated check. Unfortunately, many do not wait until the date to deposit it. However, should this happen, knowing how to proceed is vital.
If a collector wants to deposit a pre-dated check, the FDCPA regulates the steps they must take to do so. If the check is post-dated more than five days in advance of the date written, the collector must send you a written notice of their intent to deposit it at least three days prior to but not more than ten days before doing so.
When a collector does not notify you and cashes the check early, it is likely a violation of the FDCPA. As such, you may be able to hold the collector liable for statutory damages of up to $1,000 plus any bank fees you incurred as a result of their actions.
At Loker Law, we believe debt collectors should be held responsible when they commit unfair acts against consumers. As such, we will do everything possible to help you recover the justice you deserve. Contact us today to learn how we can assist you during these challenging times.