Can a company send me to collections if they have already accepted my repayment check?

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Can a company send me to collections if they have already accepted my repayment check?

Signed an agreement to work for 2 years – did not finish by 8 months; I was asked to repay $2500 moving expenses. I tried calling; have not been called back after setting case to my knowledge. I mailed a letter with a check to begin installment payments, they accepted my check and took the funds. But now send me a letter claiming they received nothing and will send me to attorney’s for collection. Is this possible since they accepted my repayment check?

Asked on April 9, 2012 under Bankruptcy Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There are  two different issues here:

1) A repayment agreement or settlement must be mutual: if the company did not accept your payment proposal or agree to it, you cannot unilaterally force  them to accept it. Hence if there was no mutual agreement to a payment plan, they may take your check and continue to proceed against you.

2) However,  they can't take your check and ignore it--rather, it must be applied to what  you owe. You should make sure you can prove it was deposited or cashed; if you can do that, you can at least ensure that you are credited for that amount if they sue or take other action.


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