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Good afternoon. It's legally acceptable to agree to a post-dated check arrangement. But, you want to be careful about several things and incorporate these into your settlement agreement. First, to prevent the law firm from presenting the check before its date and the bank honoring it, you want to conform to UCC Subsection 4-401, which provides that "a bank may honor an otherwise properly payable postdated check before its date unless the customer has given the bank reasonable notice of the postdating." Thus, you want to immediately notify your bank it writing of the check and put them on notice not to cash this check before the date. Second, you want your document to provide that the law firm agrees and acknowledges that the following
provisions of the Fair Debt Collection Practices
Act are applicable with regard to the post-dated check and that they will not violate those provision. Specifically, the Act provides that they may not use "unfair or unconscionable means to collect or attempt to collect any debt by:
1) Accepting a check or other payment instrument postdated by more than five days unless the debtor is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business
days prior to the deposit.
2) Asking for a postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
3) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on the check or instrument."
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