Once a creditor deposits or cashes a full payment check, they can't come after you for the balance. (Even if they strike out the words "payment in full" or write "I don't agree" on the check.)
The states in which this law is enforced:
Arkansas
Colorado
Connecticut
Georgia
Kansas
Louisiana
Maine
Michigan
Nebraska
New Jersey
North Carolina
Oregon
Pennsylvania
Texas
Utah
Vermont
Virginia
Washington
Wyoming
Certain states have modified this law.
In the following states, if a creditor cashes a full payment check and explicitly retains their right to sue you by adding
"under protest" or" without prejudice" along with their endorsement, then they can come after you for the remaining balance.
Those exact words must be used.
If they write "without recourse," on the check,or other indication that is partial payment, it is not enough.
If they communicate to you verbally or in writing , separate from the check itself, that is not sufficient either.
They MUST use the EXACT words above, on the check itself.
States following the modified law are:
Alabama
Delaware
Massachusetts
Minnesota
Missouri
New Hampshire
New York
Ohio
Rhode Island
South Carolina
South Dakota
West Virginia
Wisconsin
Here is a great article regarding paid in full checks.
Paid
Also a link to the U.C.C.:
LII: UCC - Locator