What Happens if a Debt Collector Deposits a Post-Dated Check Early?

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When you owe a debt and do not pay, it will often be sent to collections. As a result, you may receive constant calls and communication from a debt collector. If this is the case, you may do everything possible to get them to leave you alone. However, when they request a post-dated check but deposit it early, it may leave you with even more stress. As such, knowing whether or not a collector can request this form of payment is essential. If this reflects your circumstances, you’ll want to keep reading. You’ll discover how a Los Angeles, California debt defense lawyer can assist you through these challenging times.

Can a Collector Ask for a Post-Dated Check?

Generally, a debt collector can ask you to write them a post-dated check if you do not have funds readily available to pay a debt. However, if they solicit a post-dated check, they must give you at least three but not more than ten days’ notice that they will be depositing the check if the post-date is more than five days. This ensures you have enough time to transfer funds to your checking account to cover the amount you wrote the check for.

If the collector deposits the check without notice, this is a violation of the Fair Debt Collection Practices Act (FDCPA). Similarly, a collector cannot cash the check early, as this is also a violation.

What Can I Do if They Deposit It Too Early?

In general, it’s in your best interest to avoid giving a debt collector a post-dated check. Unfortunately, despite promising they will wait until the date to cash in the check, they may go back on their word. As such, the check may bounce, leaving you with fees as a result.

However, if a collector has gone back on their word and deposited a post-dated check, threatened you into giving them a post-dated check, or coerced you by any means, knowing how to proceed is crucial. These all constitute violations of the FDCPA, and as such, you may be able to pursue legal action against this collector.

When someone violates the FDCPA and is found guilty of doing so, the victim can receive up to $1,000 in statutory damages. Similarly, the guilty party may be held liable for things like overdraft fees if they deposited the check too early, causing additional charges to the victim.

If a debt collector violated the FDCPA and you’re suffering the consequences as a result, it’s essential to understand that it’s within your right as a consumer to take legal action. At LA Legal Solutions, our team is dedicated to protecting consumers from unfair collection practices. If you’ve been a target, contact us today to learn how we can guide you through the process of recovering compensation.

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