Legal Question in Credit and Debt Law in California

I work for a fortune 100 company that sends out Notice of Default to customers that are past due 30+ days on their vehicle loans. The notice of default outlines what the customer must to do resolve the issue which is to send in a check or money order to the address provided. A new manager in the department has taken it upon herself to send back any partial payments that do not satisfy the past due amount in the notice of default and also any personal checks received sent in by the customer. Is this legal? By mailing back the customer their personal checks wouldnt this be considered mail fraud under 18 U.S.C. Section 1341?


Asked on 12/07/10, 7:26 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

It might (or might not) be an unfair debt collection practice for which the debtors could sue, for example in a class action.

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Answered on 12/12/10, 7:55 pm


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