Legal Question in Credit and Debt Law in Kentucky

interest rate payment

I bought furniture on a 1 years same as cash on Jan. 28, 2008. I paid the balance with a check with a memo on it ''Paid in Full''. Apparently the check arrived 4 days late and now they are taking on over $400 in interest from the year. I live in KY where we just had extrememe winter weather last week and I am sure the check was delayed some due to weather. However, on the paper I signed, the date of the paperwork was 1-28-08 (even though I didn't receive the goods on that day) and the date of the first billing was 3-1-08. I assumed I had 365 from the first date of billing which was March 1st. Is there anything I can do to keep from paying the interest and IF they cash my check stating ''Paid in Full'' are they not accepting that as Payment in full?

Asked on 2/04/09, 8:53 am

1 Answer from Attorneys

Thomas McAdam Thomas A. McAdam, III, Attorney

Re: interest rate payment

It is not possible to give you a clear legal answer to your inquiry without a more detailed evaluation of the facts of your case. Several questions are presented:

1. What was the date upon which you actually received the furniture?

2. When did you mail your payment?

3. When did the seller receive your payment?

It is virtually impossible for an attorney to advise you of your rights and obligations under the terms of a written contract, without having an opportunity to review that contract.

Generally speaking, writing "Paid in Full" on the front of the check (on the line indicating "For___") has no legally binding effect. If, on the other hand, you write what is known as a "restrictive endorsement" on the back of the check ("endorsement hereof by the payee constitutes full and complete satisfaction of all claims"), then the cashing of the check by the payee (recipient) constitutes an acceptance and satisfaction of payment.

You should not take any action, based upon my advice, without consulting an attorney and explaining all the facts to him. You are best advised to seek the services of a competent Kentucky attorney. You can telephone your local bar association for a referral, or can find a good lawyer on-line at the Kentucky Bar Association's Lawyer Referral Service:

Good luck!

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Answered on 2/04/09, 6:15 pm

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