If someone owes $500 and gives a check for $20, but the memo says PAYOFF or FINAL PAYMENT could I legally cash that as a payment or should I ask them for another check...I know it's better to be safe than sorry, but LEGALLY what's the answer?
2006-07-01 11:05:19 · 6 answers · asked by mrtoddanson 3 in Business & Finance ➔ Personal Finance
If you sign the check that means that you agree with what is on the check.
2006-07-01 11:11:24 · answer #1 · answered by Mirro 2 · 1⤊ 0⤋
You can legally cash the check as a payment but if you do then they will owe you nothing else. If you sign a check that says Final Payment in the memo section, then by law you are accepting that as their final payment and saying their loan is repaid in full. Ask for another check.
2006-07-01 11:23:06 · answer #2 · answered by Eagle 2 · 0⤊ 0⤋
It would be wise to return the check without cashing it. They could legally use it in court against you.
Do not, whatever you do attempt to edit the check. If you scratch through what they wrote in the memo space, they can dispute it. You will lose in court for altering a legal instrument. If they are attempting to pay you $20.00 on a $500.00 debt, they are trying to see if you will go for it. It is a trap.
Give the check back, have them sign a contract noting what they owe.
2006-07-01 11:54:16 · answer #3 · answered by Wise ol' owl 6 · 1⤊ 0⤋
The only way that could be legal is if on the back of the check where YOU sign it stated, "payoff".....just cross it out on the memo line and write "balance still due: $$$$ and put the amount.
Memo lines are informational only and not binding contracts!!! Just cross it out and put what you want there "nice try" maybe.
People are such jerks....
2006-07-01 11:21:43 · answer #4 · answered by Paula M 5 · 1⤊ 0⤋
In some states if you initial next to the "FINAL PAYMENT" on the memo and write "disputed" next to your initials then you'll be fine. Check with an attorney.
2006-07-01 13:52:03 · answer #5 · answered by Jennifer F 6 · 0⤊ 0⤋
Better ask a lawyer. Many offer a free first consultation.
2006-07-01 11:10:25 · answer #6 · answered by Ralfcoder 7 · 0⤊ 1⤋