I was contacted by a collection agency from buffalo new york concerning an unpaid cc bill. After agreeing to set up a payment arangement I was informed that the ONLY method of payment they would except were post dated checks. I even offered to send a cashiers check but they refused. What is up with this? can they demand payment in a certain way? is it violating any FDCPA laws?. Thanks
RED FLAG!!! They could REALLY MESS YOU UP, if they deposited a couple of those checks by "MISTAKE" and you started BOUNCING checks all over the place... The bank ISN'T going to check the dates...
Postdated checks are a bad idea, generally. I've had a few collection agencies try this on me, and I just tell them I don't have a checking account, so sorry, I'll have to send cashiers checks. As for the FDCPA, post dated checks have 2 little paragraphs of their own: § 808. Unfair practices (2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit. (4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument. So, while you are "protected" by the FDCPA if you give them postdated checks, it's still a big risk if you ask me. Some collection agencies simply aren't aware of the above provisions, and may go ahead and just cash them--or threaten to cash them. If they do, you would then have to go through the process of sueing them, proving damages, etc. In any case, I would definitely try to work out alternate means before you even consider sending them postdated checks. If you absolutely must do it, make sure and send a letter along with the checks (certified, return reciept of course) with copies of the above paragraphs from the FDCPA. That way if they break the law you can easily prove it's willful violation. Also, you might check your state consumer laws to see if they say anything about post-dated checks. -- cnswift
