Canceled Check Cashed

[TXLaw]

I own and operate a small business in Texas, that contracts workers nationwide. An individual in IL worked for us and was sent a check in the mail. Said individual said they never received the check. We both agreed that it was lost and we canceled the original check and cut a new one. Yesterday I received a demand letter from a collections agency demanding payment to a check's cashing place in IL that cashed the original check, even after it had been canceled.

Is my business responsible for this cashed check when both parties agreed to cancel it? Also, the demand letter did not acknowledge who brought the check to be cashed or the original amount even. Do they need to provide me with more information?

Please assists. Thank you.

 

[presutin]

Yes, they do. Request a copy of the check, time of transaction, place, what documents were used to cash the check, any internal reports, and anything else you can think of that will be of value to determine what happened to the check.

 

[TXLaw]

Yes, they do. Request a copy of the check, time of transaction, place, what documents were used to cash the check, any internal reports, and anything else you can think of that will be of value to determine what happened to the check.

Once I request all that info and it is found that the worker knowingly cashed the check after we had agreed to stop payment on it are cut a new one, can we be held responsible for the payment?

 

[presutin]

Yes. If he does not voluntarily repay the amount of the check and collection fees, file a suit in small claims court to recover them. Good luck to you!