Posted by AnnaCA on 9/8/05 3:46pm
Msg #64243

For Jojo-MN: Bad check solution

I just read your message and have a suggestion. If possible, present the check to the bank in person. Do this every day until there is enough money in the account to cover it. If this isn't possible, try to make a friend in the bank that will tell you if there is enough in the account to cover the check, then you can go to the bank on that day and present it for payment. This way, you get the cash in hand and your own bank account won't be dinged for NSF fees. The company's bank won't reimburse you for NSF fees, but you might be able to collect on the check sooner than if you took the company to small claims court or reported them to the DA.

I had to do this with a woman I did secretarial work for several years ago. I knew she was having financial problems, but gave her a 2nd chance when one of her checks bounced. She paid me in cash for her bounced check and the NSF fees my bank charged me and I continued working for her on a cash basis. I took a chance and accepted another check from her one day when she didn't have cash on hand to pay me for my services. Rather than deposit the check in my bank and risk NSF fees, I took it directly to her bank for payment. At the time, she didn't have enough funds to cover the check (about $350). I presented the check 2 more times in person and the branch manager finally took pity on me and said I could call him to ask if there were funds in the account. He couldn't tell me how much she had in her account, just a "yes" or "no" as to whether there were enough funds to cover my particular check. On the day he finally said "yes" I was over there in a flash to collect. After that, I never worked for her again.

Another thing, you might be able to get your bank to reverse some or all of the NSF fees they charged for depositing that company's bad check. Just call and ask if they'll do it as a courtesy to you as a customer of the bank. I had two $5 NSF fees charged to me by my bank (her bank probably charged her two $18 fees for her side of the NSF transaction) for two attempts at depositing the 1st bad check. I was able to get both fees reversed.

Good luck!

-AnnaCA

Reply by Anna Nikander on 9/8/05 3:58pm
Msg #64246

Clarification

I just reread my post and it sounds like I was reimbursed twice for the same NSF fees--once from the woman who wrote the bad check and once from the bank. I wasn't. I collected on two types of NSF fees from two sources. My bank charged two $5 fees, one fee per deposit attempt, when I deposited her bad check. The bank also charged me two $18 NSF fees, one fee for each check I wrote against those deposited funds (that weren't technically there). The woman I worked for reimbursed me for the two $18 NSF fees and my bank reimbursed me for the two $5 NSF fees. The total bank fees I was charged for this woman's 1st bad check were $46. Fortunately, I got all my bank fees back and learned my lesson, which was why I presented the 2nd check for payment directly at her bank.

-AnnaCA

Reply by Anonymous on 9/8/05 5:55pm
Msg #64265

Re: Clarification

So you received 2 checks and one was paid with the bank fees and one you still have. Did I understand that correctly?

Reply by Nicole_NCali on 9/8/05 6:26pm
Msg #64271

Just call the merchant verification line..

Most banks have a merchant verification line which will advise you if the account is in good standing and valid, going to the branch is a pain in the azzz, I hate to even go to my own bank and wait in lines. Call the telephone number on the check (bank number) and see if the account is in good standing. Some people have overdrafts or nsf's and of course the check will not be honored.

I would also send a demand letter via certified mail to the person and send this over to the DA for you county.

Reply by LilyMD on 9/8/05 9:31pm
Msg #64284

Re: Just call the merchant verification line..

Why would anyone want to go through all of that hassle? Most district attorney's offices have what is called a worthless check unit. You drop of the bad check and they take care of the rest. It doesn't cost you anything and you certainly don't have to babysit the bank everyday waiting for the check to be good. The truth of the matter is if Wal-Mart or any other business gets a bad check they utilize the check unit or whatever is the office in that jurisdiction. So my question is why would you as a businessperson not want to do the same? I think JoJo should turn the check over to her local DA.

Reply by AnnaCA on 9/9/05 12:40am
Msg #64295

Re: Just call the merchant verification line..

I agree, it is a PITA, but there's a big difference between Walmart losing money on bad checks and an individual SA losing money. $800 is a lot of money to have to wait around for while the DA, small claims court, or some other agency handles it. I was just suggesting that, in this case, it might be quicker to just keep trying to present it to the bank for payment. In my case, it only took 1 week of "babysitting." How long would the DA or the court take? I'm guessing much longer. I'm not suggesting this is a way to handle bad checks as a matter of course, but in special cases of large sums, it might be worthwhile.

I like the merchant verification line idea, though. I didn't realize an individual (or sole proprietor) who didn't also have an account at that bank could utilize that feature.

-Anna

Reply by AnnaCA on 9/9/05 12:31am
Msg #64294

Re: Clarification

The 1st bad check she made good on with cash and she also paid for the two $18 NSF fees I incurred for writing checks against her funds. The 2nd bad check was the one that I kept taking to her bank to cash, which they finally did. My bank reversed the two $5 NSF fees that were debited from my account for 2 attempts at depositing her 1st bad check.

-Anna

Reply by LilyMD on 9/9/05 6:19am
Msg #64306

Re: Clarification

The one and only time I've received a bad check, I sent a certified letter stating the check plus fees needed to be paid in cash, by money order or cashier's check within 10 days of the date of the letter or it would be turned over to the DA's office. I got cash for the check + a $25 check fee 3 days after I sent the letter. No waiting, no hassles, no calling the bank everyday.

Reply by Nicole_NCali on 9/9/05 1:56pm
Msg #64392

Certified letter and moving forward is the normal course

If a person knowingly writes a check to you on account with no funds or insufficient funds, this is considered a crime in most states, it is something like theft of services or something like that. I think that most people get away with this practice is because the person who has been stiffed doesn't want to take it to the next level.

Get your local DA in charge, writing a letter to the check writer is a courtesy, she knows the check bounced by her NSF fees from her bank. If she doesn't reconcile her bank account that is her problem.