Notified of NSF Check but Deposited Anyway

[LinkWise]

Jurisdiction

California

Hi there,

I've read all I can about stop payments and NSF checks but have a particular case that I would like clarified. Basically, someone post-dated a check and owed me $400.00. The day before the check was post-dated, that person notified me that he did not have enough money in their bank account for the check the day it was Post-Dated. Due to our history I decided to cash the check on the day it was post-dated anyways, thinking that it is their responsibility to come up with the cash and if they don't have it I will write them a letter saying that they need to pay me within 30 days or I will sue. My question is, if they did inform me that they did not have enough money when I deposited it, do I still have a case to get my $400.00 back or do they not have to repay me anymore since I tried depositing it knowing that it was a NSF check. There is a possibility that they decided to do a stop payment on it because I told them I would turn it in anyway, but they did not tell me this. They just told me they would get a penalty.

In addition, when we talked on the phone they started getting belligerent so we ended the conversation on the phone but I gave them an option to pay me back in material items that they owned like a TV, furniture, etc.

Thanks!

 

[army judge]

Never accept a personal check, much less a post dated personal check.
You're on the hook for the fees and charges to your account.
You can sue the deadbeat in small claims for the original $400 debt, Lu's fees, but even if you prevail, you most likely wont ever collect a dime from the deadbeat.

Only accept cash from deadbeats, and make sure you use the counterfeit pen to verify its real cash.

Better yet, don't a borrower or lender be, just say no to anyone who can't pay in full IN CASH for the goods or services delivered.

 

[LinkWise]

Hi Army Judge,

Thank you very much for taking the time to take a look at my question and for the advice.

This was a loan to a (now former) friend and to clarify, they did notify me that they did not have enough funds in the bank. Does my action of depositing the check knowing that there aren't enough funds make it so that the person does not owe me that amount anymore? Will this make it harder for me to win the case, or by law do they still owe me that $400.00?

Thanks!

 

[army judge]

Hi Army Judge,

Thank you very much for taking the time to take a look at my question and for the advice.

This was a loan to a (now former) friend and to clarify, they did notify me that they did not have enough funds in the bank. Does my action of depositing the check knowing that there aren't enough funds make it so that the person does not owe me that amount anymore? Will this make it harder for me to win the case, or by law do they still owe me that $400.00?

Thanks!

Probably not, because you haven't been paid.
I suggest you REREAD my original response.
Short version, you'll probably never get your money, even if you do sue the deadbeat.

 

[adjusterjack]

Does my action of depositing the check knowing that there aren't enough funds make it so that the person does not owe me that amount anymore? Will this make it harder for me to win the case, or by law do they still owe me that $400.00?

Your ex friend still owes you $400.

But if you incurred NSF fees at your bank, he doesn't owe them to you, just the $400.

Unfortunately, I have to agree with the judge. Even if you win the lawsuit your chances of collecting from a deadbeat are slim to none.

 

[txls]

Once they wrote the check they were obligated. Telling you the money was not there does not relieve them of their obligation. You shouldn't have to sue them. The District Attorney will prosecute on a hot check. Some DA offices do a better job than others.

 

[cynthiag]

If someone gives you an NSF check and you deposit it, when the check is returned unpaid then that money is no longer in your account, which means that they still owe you the money. It has absolutely nothing to do with them telling you the check would bounce, because face it, they could tell you that and have more than enough money in their account, just to keep you from cashing or depositing the check. Until you actually have the money in some form, either in cash or sitting in your account available for you to use, they have not satisfied their obligation to pay you.

Here's another way of looking at it: say I owe my cell phone carrier $250. I write them a check, and after I mail it to them I call them up and say "by the way, there won't be any money in my account when you try to negotiate that check I sent you." They go ahead and try to negotiate the check anyway. After my check bounces, and they contact me to tell me to come in and buy back my NSF check from them, do I get to say "nope, I don't owe you the $250 anymore, I wrote you a bad check and told you it was going to bounce but you negotiated it anyway"?