I just got a copy of my credit report, I have three NSF checks listed on it from a collection agency. This may be an error or from an old checking account (it's been closed for three years). I am sending them a validation letter and will pay if they are truly mine but my question is how can the collection agency report this? I never knew bad checks could be placed on your report. I never sign an "assignment of debt" aggreement when I write a check so how can this collection agency ask me for the money? isn't this between me and the company I wrote the check too? Does anyone have any strategies for me (if they are mine I will pay but I don't want this listed on my credit). I been lurking here for a few days, you people are a blessing. Thanks
Be careful. The only thing about bad checks is that you can get arrested. I am dealing with a CA like this. Yes they can report. Continue with validation and estoppel. Then, I would call the DA and explain the situation. When I called and stated that I had sent 2 demands for validation which were ignored, they would certainly not accept enforcement of the checks.
they can place in collection for nsf chcks. your signature on the check proves the debt. however, i would not pay unless they agreed to return the check to me and will remove it from the cr. btw, proving you incurred the debt is not the same as the ca's authority to collect it, so yes, get proper validation.
Sometimes banks honor bad checks as a service and then the account holder pays the amount of the check plus penalty fees. If the account gets closed before payment, it's now a debt. If the bank doesn't honor the bad check, then I guess a bad checker writer would owe whomever the check was written to. Unless the writer never received any goods or services for the check. Then I say the writer owes no one. Is there a time limit that bad checks can be given to the DA for prosecution? Not all bad checks go to DA. Some banks or companies simply let a CA collect. My guess is that a small check probably won't go to DA while a large will.
What do you mean by DA? You can only be arrested if 1 there was criminal intent and 2 only if the check is because of NFS. All so called bad checks are not NFS checks.Where folks get confused is they use the catch all phrase returned check. Who would not accept enforcemen tof the checks.?
The checks should have been returned to Her/Him long ago as it is the first step required in resolving the issue.Reporting it to the CRA prior to this is inexcusable.
If you pay with an agreement for them to return the check to you, after you receive it do a validation. They don't have the check anymore.
