Are terms stated in the memo of a check legally binding for the person or company that cashes the check?

Question

I'm wanting to settle a debt and would like to state terms that would force my debtor into specific actions if they accept my payment.
Thank You!!

Answer 1

You could write "Payment in Full". However, this is NOT binding on the creditor unless specifically called to its attention. THe law recognizes that big companies do not have time to read every check, and the people who deposit them aren't trained to deal with special notes on them. So if a company deposits such a check, the Uniform Commercial Code allows it to back off, and refund you the money, if you call its attention later to the "payment in full" note--they have a couple of month or so to take action one way or the other. So "payment in full" is a possibility, but it's not guaranteed.

Answer 2

When I was a bill collector, we were told that if a debtor put anything like "Paid in Full" or even "P.I.F." on a check we would not accept it, unless it was for the full amount or the final payment, because that would mean the debt was considered to be paid off. (BTW, since YOU owe the debt, then you are the debtor.)

I would consult an attorney for your full legal rights.

Answer 3

Usually the memo line is not binding because it is only for the writer's reference. The only line that is enforceable is the line where you write out the payment amount in words....the box where you write the number in isn't even enforceable

Answer 4

You are seeking legal advice. You need to speak to a lawyer who is familiar with your state's laws. The advice lay people give you here is worse than useless.

Answer 5

they can be

if the check infers that this is the full payment for your debt, it may be enforceable