Cashing a cheque in full and final settlment - should you do it? Our debt recovery solicitor explains

This is a situation that occurs more and more where cheques are offered for less than the outstanding balance with a letter stating it is in full and final settlement

Generally, once this cheque has been cashed, it is deemed accepted by you in full and final settlement so you could be losing out on money and settling for an amount that you did not want to accept.

If you receive a cheque in full and final settlement and it is not acceptable, write back to them stating that it is only accepted in partial settlement and if you do not hear from them, you will bank it and credit towards their outstanding balance. Responding in this way will allow you to cash the cheque after 7 days (assuming you do not receive a reply) and allow you to pursue the balance.