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Advice Team Responses
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Miscellaneous: Checks |
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A friend of mine was asked by a creditor to send six or seven posted dated checks. Her question is, can they cash the checks before the date on the checks? She is very concerned that they are allowed to cash them before the date specified. Thanks for your help. - Vicki |
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Dear Vicki,
Your friend should tell that creditor to forget it. Although the Fair Debt Collection Practices Act prohibits creditors from depositing a post-dated check before the check’s date, there are still risks involved.
For starters, it puts someone else in control of your money. For example, if you do not have the money in the bank when the creditor decides to cash the check, you will be assessed a “non-sufficient funds” charge by their bank. Besides, having a bunch of uncashed checks floating around sounds like an invitation to fraud if you ask me.
Tell your friend the best thing to do is to pay her bills on time and as agreed.
Hope this helps,
The Advice Team
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It's been three years since I've moved from California and since then I haven't received any past due bills from prior credit cards, but I know I owe the companies money. I also wrote two bad checks while attending college and I've been trying to clear it. How do I go about finding out what and who I owe? And since I wrote a bad check that bounced does that hurt my credit? If yes, how much, and I do I go about restoring my credit? -Campbell |
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Campbell,
Your first step is to review your credit reports. There are three main credit reporting agencies. I recommend you take a look at all three since they may contain different information.
Trans Union www.transunion.com
Equifax www.eqifax.com
Experian www.experian.com
The reports are very easy to read and will provide you with the contact information for your creditors.
Your bounced checks should not appear on your credit report, but the information may have been supplied to ChexSystem. Approximately 80 percent of the banks and credit unions use the services of ChexSystems. This negative information will remain in ChexSystems database for five years. If you wish to get a copy of your ChexSystem file showing what information is entered, please go to ChexSystems web site: www.chexhelp.com.
The Advice Team
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Why would a bank refuse to open a savings and checking account? -John
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John,
Approximately 80 percent of the banks and credit unions use the services of ChexSystems. ChexSystems maintains a database on consumer's bank accounts that have been mishandled. If you have written "hot" checks or closed an overdrawn bank account in the recent past, your name and how you mishandled your previous bank account, has probably been supplied to ChexSystem. This negative information will remain in ChexSystems database for five years. If you wish to get a copy of your ChexSystem file showing what information is entered, please go to ChexSystems web site: www.chexhelp.com.
Good luck,
Susan |
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