Posted on June 3, 2009 at 1:22 am can a debt collector cash a post-dated check? is it legal for them to do that? i want to know my rights on this as a consumer. thanks.

Posted on June 3, 2009 at 2:35 am Debt collectors may cash postdated checks. There is no law prohibiting them from doing so. However they are not authorized to demand this from you for them not to press charges. In other words, they cannot request a post-dated check from you in lieu of criminal prosecution.In addition, debt collectors are prohibited from cashing postdated checks prior to and after the agreed date on the check. Doing so is a violation of the FDCPA, which protects consumers from abusive and harrassing practices by third-party debt collectors. They are also required by law to provide you with a written notification that they will be withdrawing a specific amount from your checking account (as per your agreement) at least 15 days before the date on the check.

Posted on June 3, 2009 at 2:51 am In addition to that, I believe that there's a certain degree of convenience in issuing postdated checks to debt collectors in order to make payments on your loans, but there's actually a risk involved in it..... in the event that they decide to sue you, they can very easily levy your checking account. I'd personally suggest that instead of issuing them a postdated check, you can send them a cashier's check or certified check, instead of giving them your routing & checking account numbers over the phone.

Posted on June 3, 2009 at 3:02 am both are right on debt collection agencies not being allowed to deposit postdated checks before the date on the check. just a little correction, Cheetos lover. if the check is postdated for more than five days, the debt collector must inform  the person in writing no less than three days and not more than 10 days before the check is deposited.hope that keeps us right on track.

Posted on June 8, 2009 at 9:16 am I would also like to add- If you plan on post dating a check for a payment made to a collection agency, you may want to request that the collection agency send you something in writing with the terms of the payment first. For example, if you settled a $5,000 credit card debt in collections for $2,000, have the collection agency send you a settlement letter first before you turn over your checking information to them. That way, the terms of the settlement, including the payment amount and date of the check cannot be successfully disputed at any time in the future.

Posted on June 8, 2009 at 9:00 pm thank you Steven.... i appreciate your reply. my question now is..... how should they send their settlement letter? can it be thru fax or email or regular mail?

Posted on June 8, 2009 at 9:32 pm Typically they send the letter through regular mail. Some creditors call these letters "settlement tax offers" and these are offered for a limited time only. Some creditors opt to fax these letters. Make sure that when they send you the documents, the details are clearly spelled out for you and payment terms are clear and concise.

Posted on July 6, 2009 at 9:32 pm What if they withdraw the funds from your checking account before the post dated agreed upon date?

Posted on July 7, 2009 at 2:09 am Deceived: that is an illegal action. Even if the debt collector makes so much as a threat to cash the check, it's already a violation of federal law. What you can do is file a complaint to the Federal Trade Commission regarding the matter. Make sure to keep a record of the date, the conversation, and the bank statement that reflected the transaction that you did not authorize.

Posted on July 17, 2009 at 1:21 pm Can a retailer accept post dated checks from customers for a sale and have them dated over a six month period???