V
vbrown99
Guest
What is the name of your state? CO
Is this legal?
Say a business is given a check for $1000, and the check bounces. The business then prints 10 $100 checks using the information on the bounced check and presents each of those, collecting $800, and writing the other $200 off - after all some money is better than none.
I've done some research and the UCC states that the "signature" on the checks does not have to be the legal signature of the account holder- you could put something like "signature on file".
I would think, in theory at least, that this would be a valid debt collection method since the buyer signing the $1000 check was promising to pay the $1000 debt.
Any ideas whether this would work in practice? Can anyone state statutes/laws/cases that would support an opionion either way?
Thank you very much for any answers.
Victor
Is this legal?
Say a business is given a check for $1000, and the check bounces. The business then prints 10 $100 checks using the information on the bounced check and presents each of those, collecting $800, and writing the other $200 off - after all some money is better than none.
I've done some research and the UCC states that the "signature" on the checks does not have to be the legal signature of the account holder- you could put something like "signature on file".
I would think, in theory at least, that this would be a valid debt collection method since the buyer signing the $1000 check was promising to pay the $1000 debt.
Any ideas whether this would work in practice? Can anyone state statutes/laws/cases that would support an opionion either way?
Thank you very much for any answers.
Victor