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Once the Check Clearing for the 21st Century Act (Check 21) came into effect in 2004, banks could handle checks electronically thereby increasing the speed of check processing and reducing the costs of handling and transferring physical checks. Today, most financial institutions offer a mobile deposit option that lets people deposit checks through an app on their phones. While this is convenient for depositors, it also allows for fraudulent activity such as double debiting checks.

Double debiting occurs when a person deposits a check virtually through their bank’s app and in-person at a check-cashing store. When the check casher puts the check into their account and presents the check image to the check makers’ bank for payment, the check won’t clear because it was already paid in the first mobile deposit. This action also breaches the warranty the person made when depositing the check through their phone.

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If the New York court system is unified, does the court you choose to file your New York debt collection claim in make a difference? An outside observer would believe the court’s unified title implies that each of the 62 counties of the New York State Judiciary operates under the same procedures as the others. The reality is actually quite different.

Many of New York’s 62 counties have their own distinct rules, requirements, and procedures, even those in adjoining counties. These differences can present themselves in a variety of ways, including the following circumstances:

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Some people believe if they make payment on bills placed for collection they will avoid legal debt collection. Further, the payor believes that their decision to pay amounts at their discretion prevents the creditor from moving forward in the collection process and going “legal.”

Does paying down a debt mean you get to enjoy “safe harbor” from a creditor’s collection efforts? The answer is mostly no. Creditors and their agents do not have to accept installment payments toward a debt.

The creditor (or their agent) and the debtor or the party paying on their behalf must agree to the terms of the payout and or settlement of the debt. A delinquent client can not merely begin sending installment payments to a creditor and claim to have a binding agreement with the creditor to resolve the debt. As with any agreement, there must be a “ meeting of the minds” in order for the agreement to be binding. The parties must agree on the terms, which ideally should be in writing.

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Whether you are looking for assistance with collection efforts or want to make sure your current vendor is in compliance, you should be familiar with the laws that govern New York debt collection. This way you can be sure your agency or attorney is in compliance.

It should be noted that most news articles about debt collection involve rogue collectors or firms that either harassed consumers or failed to give the required notice of a debt. Other complaints are linked to the lack of or failure to comply with licensing, the theft of monies collected for the benefit of creditors by the collection vendor, and more.

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