California | Credit and Debt Law
Legal Question
Check cashing restriction and legal binding contract
If I write on the memo section of a check: ''Payment in full for file #... and the name of the merchant'' and also, if I write on the reverse side of the check: ''The cashing of this check constitutes payment in full for debt file #... and name of merchant and the name of the collection agency'' is this legally binding if the merchant accepts and cashes the check? Does the merchant have any right to sue and try to collect more money on disputed amounts; more than the amount of the check? I believe the cashing of the check constitutes payment in full and that no other amount is due. If I also include a letter with the check, disputing excessive charges, is the cashing of the check evidence that the terms were accepted by the merchant?Please send me the civil or federal code or the name of the law book where I may read any law that refers to this situation and collection agencies.
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Read More Answered By: Laurence Haines |
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