The "Live Check Mailer" is one of the most powerful forms a firm offer of credit can take but, the compliance issues are complex. In addition, mailers which attempt to emulate the live check by using a facsimile thereof are illegal and tend to bring more intense scrutiny to the genuine article.

Simply stated, a "live check mailer" is a loan solicitation that includes a bank check (negotiable instrument) which will fund the loan. In the automotive finance arena, the check is normally made payable to an automobile dealer and is technically a draft to be paid when and if certain terms, conditions, and stipulations are met. Only a legitimate financial institution can make an offer of credit and a true live check mailer has to be drawn on an actual bank, credit union, or similar financial institution which can execute a financial instrument through the Federal Banking system.

There are legitimate financial institutions which solicit automobile loans using live checks. Examples of these are RoadLoans, a division of Triad Financial Corp., North Richland Hills, TX; Direct Lending Source, Inc., Marathon, FL; OpenCheck.com, Costa Mesa, CA, and Virtual Lending Source, LLC, San Diego, CA, to name a few. The vast majority of other mailers in the marketplace purporting to be "live check mailers" or "check mailers" are illegal because, among other reasons, the check is a facsimile. The solicitation of financing using a false check violates the Unfair and Deceptive Tade Practices provisions of the Consumer Protection Act as well as United States Postal Regulations, US Code and the consumer protection laws of most states. A false check is defined as any facsimile of a check which is not, in fact, a negotiable instrument. That includes "vouchers," "certificates," "coupons" or any other item which is not clearly labeled as such and which is, or appears to be, disguised as a check or which an average consumer could mistake for a check. These false check mailers have drawn the attention of consumer protection agencies, Offices of Consumer Affairs, Attorneys General and predatory attorneys nationwide. The result is either lawsuits (usually class action) or fines and penalties (or worse) for the dealer and mail campaign author and if the mailer is sent to a list based on credit data, the lender upon whose permissible purpose the access is based (if any).

The only way to ensure that a check mailer is legitimate is to confirm that: A) the financial institution offering it is a licensed financial entity authorized to conduct business in the state and B) the actual check is a true and genuine negotiable instrument drawn on an existing checking account in good standing. If a ?check / voucher / coupon? is not a true check, it must bear the following disclosure conspicuously: "THIS IS NOT A CHECK OR NEGOTIABLE INSTRUMENT AND HAS NO CASH VALUE."