I have two questions concerning a check I wrote to a creditor marked "paid in full."
The check was written to the creditor for the balance they requested. Because the amount they asked for was lower than previous statements, and there had been an ongoing dispute about the balance owed, I wrote my account number and "paid in full" on the memo line.
The check was cashed and has a stamp on the back that reads, "credit to the account of within named payee absence of endorsement guaranteed MFSC #1 pmjt. acpt w/o prejudice."
I'm in South Dakota. Therefore, Uniform Commercial Code Section 1-207 applies. This allows a creditor to write "without prejudice" or "under protest" on the reverse of the check to protect their rights. This section of the code (57A-1-207) ends as follows, "(2) Subsection (1) does not apply to an accord and satisfaction."
I have two questions.
1) Because the commercial code reads, "does not apply to an accord and satisfaction," does this mean the creditor cannot reserve their rights by writing "without prejudice" on the back of the check?
2) If the answer to my first question is no, does the text stamped on the back of the check offer me any protection? The stamp reads, "absence of endorsement" and has the abbreviation "W/O prejudice."
Thank you in advance for your help.