Restrictive Endorsement

CASHING A CHECK WITH A RESTRICTIVE ENDORSEMENT / IS THE CHECK  NOW PAYMENT IN FULL

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It is important for creditors to consult with a lawyer. Our collection law firm is frequently asked to answer the question can cashing a check with a restrictive endorsement “paid in full” mean that they have accepted the payment as full payment despite the fact there is still a balance due. This a complicated area and we urge our client’s to call our collection law firm and speak to our collection lawyer.
Any writing affixed on a check or words contained in some form of document, i.e., email, letter, that refers to an accompanying check is considered a “restrictive endorsement.” Creditors should be versed on the effects of “restrictive endorsements” as cashing a check with a restrictive endorsement could lead to the conclusion that the debtor has achieved an “accord and satisfaction,” payment in full. At our debt collection law firm, we receive many inquiries from our debt collection clients on whether or not to cash a check tendered by a debtor with a restrictive endorsement. Our collection attorneys always err on the side of caution and advise our debt collection clients not to cash the checks.

Restrictive Endorsements on Checks

Restrictive Endorsements on Checks

Our collection law firm also receives inquiries to our collection lawyers about situations where a check is sent to a lock box and cashed. Fortunately for our debt collection clients, all states, have adopted the recent revision of the Uniform Commercial Code, Article 3, Section 311 (UCC3-311), which is commonly referred to as “Safe Harbor.” The Safe Harbor principal is applicable to payments received in a system that is serviced by a third party (such as a bank lock box or a post office box). Typically, this is the creditor’s banking institution whose lock box is serviced by banking personnel lacking the knowledge and expertise to make an informed decision relative to restricted endorsements.
The Florida statute is found below but generally a creditor should look to state statute to find a similar Safe Harbor provision such as UCC 3-311. The UCC 3-311 specifies within 90 days of depositing restricted payment from a buyer, the seller can send one of their checks back to the buyer in the same amount of the restricted check and preserve the creditor/seller’s legal remedies. The creditor should make sure the “reimbursement” check should be sent back via some mode requiring proof of attempted delivery. Our collection clients should note the buyer/debtor need not cash the “reimbursement check;” as the creditor/seller’s right to proceed with litigation is preserved by the act of sending back the amount originally submitted under endorsement text or provisions.
Our collection lawyers also counsel our debt collection clients to make sure they put specific language in their contracts and or credit applications pertaining to where and to whom payment should be sent. This is important because the Uniform Commercial Code provides that if a credit grantor is made aware of a dispute prior to any type of final payment being made the creditor’s claim for an overdue balance is not discharged if within a reasonable time before tender the creditor stipulates that a restricted instrument (restricted check) must be sent to a designated person, office or place. If those instructions are not followed, then creditor remedies are available.

Florida Statute Section 673.3111 Accord and satisfaction by use of instrument, provides:
(1) If a person against whom a claim is asserted proves that that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, that the amount of the claim was unliquidated or subject to a bona fide dispute, and that the claimant obtained payment of the instrument, the following subsections apply.
(2) Unless subsection (3) applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
(3) Subject to subsection (4), a claim is not discharged under subsection (2) if either paragraph (a) or paragraph (b) applies:
(a) The claimant, if an organization, proves that:
1. Within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place; and
2. The instrument or accompanying communication was not received by that designated person, office, or place.
(b) The claimant, whether or not an organization, proves that, within 90 days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with subparagraph (a) 1.
(4) A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.

 

Our debt collection clients  are often confused  on what they should do with a check with a restrictive endorsement  ” Paid in Full.” Please feel free to contact our debt collection lawyers at our debt recovery law firm. Our collection attorneys are always willing to discuss a collection strategy to help our client’s minimize risk and bad debt.

DEBT COLLECTION LAW FIRMS COLLECT PAST DUE RECEIVABLES

USING A DEBT COLLECTION LAW FIRM TO ASSIST COLLECT PAST DUE RECEIVABLES

Our collection lawyers recognize, in this tough economy, many businesses are struggling with cash flow. Our collection law firm can assist a company in collecting their past due collection accounts. Our collection attorneys are sensitive to the tough economy and work with our collection clients to implement a debt collection strategy. Not every debt collection matter is the same. Each one of your customers is unique and our collection lawyers work with you to identify the specific issues presented. Our collection attorneys work with you to identify what may have put your customer in a situation where they are now behind in paying their past due invoices.
Our collection law firm will not only send a collection demand letter but, our collection attorneys will investigate the customers corporate status, attempt to speak with the owners of the company and then make a recommendation as to the best debt collection strategy for your company. Sometimes we may suggest that your company may better be suited using a debt collection agency. Our collection attorneys will ask you specific questions that will help you decide whether to use a collection agency or a collection law firm.

Florida Collection Law Firm

Palm Beach County Court House

If your company has many low balance past due accounts, a collection agency may be ideal. However, a collection agency cannot give legal advice and a debt collection agency cannot file a law suit if necessary. Not every debt recovery matter needs a collection lawsuit. That is why it is important to speak to our collection attorneys and decide together a debt recovery strategy. Sometimes it makes sense to place some of your past due accounts with our collection law firm and other accounts with a collection agency.
Call our collection law firm and ask to speak to one of our collection attorneys. Together, we will devise a debt collection strategy that is just right for your company’s past due accounts.

DEBT COLLECTION ATTORNEY TO HELP CASH FLOW

Debt Collection Attorney

In the beginning of 2015 many businesses will look at their account receivables and realize their cash flow could be better if their customers paid their invoices on a timely basis. A business decision needs to be made when  to use the services of a collection law firm to help recover delinquent accounts. Our collection law firm and attorneys work with our clients to strike a balance between aggressive collection strategies or simply to send a gentle collection letter to the client’s customers who simply need to see that past due payments are no longer going to be ignored by your company.

Debt Collection Attorney

Debt Collection Attorney

Our debt collection law firm has many years of debt recovery experience in most industries.Our collection attorneys have the experience to use a gentle debt collection approach to help the client maintain the business relationship; or our collection lawyers can recommend a more aggressive approach, including filing a lawsuit to attempt recovery of your receivable when necessary. Our debt collection firm will also explore naming officers of the debtor company, when it appears that the customer may have fraudulently misrepresented their financial position in order to induce your company to ship product.
Please call our debt recovery law firm and ask to speak to our collection attorney or one of debt collection paralegals. We will be happy to discuss a debt collection strategy that is just right for your company. Do not let past due collection accounts put a damper on your cash flow. Call our debt collection law firm and debt collection attorney today.

Collection Law Firms Post -Judgment Discovery

Collection Law Firms Ensure Debtor Compliance with Discovery in a Debt Collection Matter

After a judgment is obtained in a debt collection case, the Court typically orders that the debtor be required to answer post-judgment discovery. Our collection lawyers can either take the deposition of the debtor or prepare interrogatories to assist our collection law firm discover assets in the debt collection matter. Depending on the balance of money owed to our client, our collection attorney will recommend which is the most cost effective way to proceed.
Our collection attorneys are able to compel the debtor in a debt collection matter to make a full financial disclosure of its assets. If the debtor does not comply our collection lawyer will petition the Court to have the debtor appear for the Judge and explain why the debtor has not provided the required financial disclosure. Once there is a disclosure our collection law firm will discuss with the creditor the best way to attach assets.

Miami Dade Court House

Miami Dade County Court House

Our collection attorney always asks a client if they have any bank account information from past business transactions with the debtor. The debtor may be using the same bank account. Our collection lawyer will then have the Court issue a writ of garnishment. The writ of garnishment is then served on the bank. If the debtor still maintains accounts, the bank will notify our debt collection law firm. Then after 30 days, our collection lawyers will petition the court to then turn over the funds being held by the bank to our attorney trust account on behalf of our clients.
Our collection law firm would be happy to discuss post judgment collection strategies and or debt collection strategies with you. Please feel free to contact our collection law firm and speak to our debt collection attorneys. Our debt recovery firm would be happy to devise a collection strategy that is just right for your company.
steve@gebelofflaw.com

Officer Liability in a Debt Collection Case

When considering strategies to most effectively be able to collect money on a debt owed to your company, an analysis of the corporate structure is vital. The State Department of Corporations give valuable information on how the corporate debtor is structured. Many times in a debt collection case, our collection attorneys find that the debtor’s corporation has been administratively dissolved. That does not necessarily mean the debtor company is still not operating. In that case our collection law firm is able to bring your company’s debt collection lawsuit against the officers of the company in an individual capacity. Our collection lawyer would draft the caption of the debt collection lawsuit …John Johns t/a (trading as) Bob’s Debtor Company.

Our collection law firm believes that keeping pressure on the officers of an entity is a very effective tool in getting your debt collection matter resolved. Most companies set up a corporate structure to shield the officers from personal liability. However, if the company is sloppy and does not keep up its corporate charter, individual liability for the debt may be imposed by the Courts.

Miami Dade Court House

Miami Dade County Court House

Our collection law firm’s collection attorneys also look for evidence that a corporate debtor may have been severely under-capitalized. Our debt collection law firm has brought suit against officers of a company for not having adequate working capital. The theory being that the officers knew or should have known that the debtor entity did not have the financial capability to pay for the goods or services.

If you would like to discuss your company’s debt collection and or debt recovery strategies with our debt collection attorney, feel free to call our debt collection law firm. We would be happy to devise a debt collection and recovery strategy that is custom tailored to your company’s debt collection needs. EMAIL US TODAY

Why Use a Collection Attorney / Why Use a Collection Agency

A collection attorney has the ability to send out collection letters to customers that owe you money. The collection attorney can provide insights to you on alternative methods of effectuating debt collection. Our collection law firm is constantly looking for ways to pierce the corporate veil and assert personal liability against corporate officers of a company even when there are no personal guarantees on the account securing the debt.

Another advantage in using a collection attorney law firm over a collection agency is that the collection attorney can file a lawsuit to help you collect your money. If your customer does not enter into a payment agreement with our collection law firm, our collection attorney will enter judgment. Once judgment is entered, there are many different ways our collection attorney can discuss with you on how to locate assets to satisfy the debt.

Florida Collection Law Firm

Palm Beach County Court House

If you have smaller balance accounts that it does not make sense to litigate with a debt collection law firm, a collection agency may be the answer. The collection agency will also send demand letters and make phone calls. But, of course a collection agency cannot provide legal advice or file a lawsuit to collect your money.

If you need to discuss your account receivable issues with our collection attorney, please feel free to contact our debt recovery law firm and our collection lawyer will be happy to devise a debt collection strategy that is just right for you. steve@gebelofflaw.com

Collection Attorney to Lead Marathon Teams to Benefit Leukemia Research

Collection Attorney Stephen Gebeloff  was chosen  to  be the team-leader for  the Palm Beach Chapter of Team in Training. All money raised by the debt  collection lawyer and his  debt recovery law firm will be used to fund research and  help patients currently  who are currently treating.

Besides the day to day duties of  running his debt collection practice, Gebeloff  enjoys helping others  achieve their fitness goals and also collect money for the Leukemia Society in support of their mission. This season, he will be leading and  training with the Nike San Fransisco Half Marathon and the Marine Core Marathon teams.

Collection Attorney

To help collection attorney Gebeloff  support  Leukemia Research and fund patient services, please consider  making a tax free donation to his fundraising page.   Of course, if there are any questions pertaining to debt collection, domesticating judgments or generally questions  about the  collection industry, please feel free to contact our debt collection law firm  to discuss.

Email Collection   Attorney Gebeloff

Call Our Debt Collection Firm  1-888-345-8677

Collection Attorney to Run NYC Marathon for Sloan Kettering

Collection attorney Stephen Gebeloff will be running the NYC Marathon in November to benefit Sloan Kettering as part of Fred’s Team. When he is not behind  his desk at his boutique  collection law firm, he is spending many hours out on the road training.

“Life is not all about being a collection attorney”   Gebeloff  explains.  Besides collecting debts and collecting on judgments for his client’s , Gebeloff  believes that is is important to give back.  Knowing I can personally help make a difference in the battle against cancer  helps  me run the many miles in preparing for  the marathon.

Gebeloff has been practicing debt collection law for most of his career but,  finds running  to help find a cure  very rewarding.  “In my debt  collection law career I have met many people  and very rarely have a dull day. But, when I’m not collecting debt’s, I love to lace up my sneakers and  run with my teammates, most become friends for life.”

If you have further questions about  our collection law practice or want to speak to Steve about his running, call or email.   We will devise a debt collection or  running strategy that  is just right for you.

Collection Attorney

If you would like to support our collection attorney  for his Marathon Run, you may make a tax deductible contribution by  clicking the link below.

Link to Support our Collection Attorney  and Sloan Kettering

 

 

 

 

OUR DEBT COLLECTION LAW FIRM LEAVES NO STONE UNTURNED

When collecting debt, time is critical to maximizing your recovery of your past due account receivables. As a collection law firm, we see time and time again our clients waiting on their customers repeated promises for payment. Our collection lawyers have spoken to hundreds of debtors. Our collection attorneys know when a debtor is truly experiencing financial issues that are not allowing the debtor to make payment. Our collection lawyers also know when a debtor simply is stalling and / or simply has no intention of paying for the goods or services your company has provided.

Our collection law firm strives to quickly advise our debt collection clients the dynamics surrounding each debt collection case. Our collection attorneys believe that our clients when they engage a debt recovery firm should have all the facts surrounding a debt collection matter so they can make informed business decisions prior to spending additional time and resources in attempting to recover their money.

Florida Collection Law Firm

Palm Beach  Court House

Our debt collection firm and attorneys have the tools to assist our clients to paint a picture of a debtor’s situation. Our collection lawyers want to provide our clients with the information they need. Not every debt collection case can be recovered. But, our debt recovery firm wants to at least let our collection law clients know that we leave no stone unturned in at least presenting scenarios that effect the collectability of our clients past due accounts.

At our collection firm, one of our debt collection attorneys would be happy to discuss your particular debt recovery case. Our collection lawyer will devise a debt collection strategy that is tailored to your company’s particular  debt recovery needs.
Please call our collection attorney or email us the particulars of your debt collection case.

Contact a Collection Attorney and Debt Collection Law Firm

What to do when your customer owes you money and starts ignoring your demands for payment. You should consider using a debt collection and debt recovery law firm.

Since the economic down turn of 2008,   it is more and more common for a small business to struggle with its cash flow. As a result, businesses are cash strapped and cannot pay all of its vendors each and every month. It is important for creditors to be proactive.

Our   debt collection law firm believes that those creditors that push the hardest, will get paid first ahead of other vendors that our owed money. Our collection attorneys send out collection demand letters. Our debt collection lawyers will contact your customers who owe your company money and try and ascertain if there is a legitimate business reason why your account receivable is not being paid. If there are legitimate reasons, our collection law firm will act as an intermediary and attempt to help both sides come to an amicable solution.

If there are no legitimate business reasons for your customer to not pay on your open account, our collection attorney will most likely recommend that suit be brought. Our collection lawyer will analyze the collection account to see if officers of the company can be held responsible for payment of the corporate debt.

 Collection  Attorney and Collection Law Firm

Collection Attorney and Collection Law Firm

Contact our collection attorney at our debt collection law firm and speak to our collection lawyers about the specifics facts surrounding your debt collection case. Our collection lawyer will discuss the possibility of pursuing the principals of closely held entities for the debt owed to your company. You may mail or email your supporting documents to our collection firm. Our collection attorney will review your account and then contact you to devise a strategy for your debt collection matter.

Stephen B. Gebeloff, P.A.
5255 N. Federal Hwy., 3rd Floor
Boca Raton, FL 33487
(561)953-4600
fax(561)953-4610
steve@gebelofflaw.com