Stop payment on a check

Status
Not open for further replies.

smQQkin

New Member
Almost a month ago I recieved a check from a client for a computer system that was built for them. The client supposedly stopped payment on the check about three ago. The bank, which we are mutual members of never caught the stop payment and thus allowed the deposit to go through. On 02/08/2005 my bank notified me that they were debiting my account $1129.44 almost 3 weeks after the orig check cleared. Can they do this. Isnt this the banks fault. Do I have to pay them?
 
smQQkin said:
Almost a month ago I recieved a check from a client for a computer system that was built for them. The client supposedly stopped payment on the check about three ago. The bank, which we are mutual members of never caught the stop payment and thus allowed the deposit to go through. On 02/08/2005 my bank notified me that they were debiting my account $1129.44 almost 3 weeks after the orig check cleared. Can they do this. Isnt this the banks fault. Do I have to pay them?
Good question. You may want to take a look at your contract with your bank - you should have an agreement of some kind which will govern. I wonder what would have happened if you cleared out your account before the bank had a chance to debit your account. What did the bank say when you contacted them? I'm also curious -- did the client keep the computer system?
 
The returned check is what we banking lawyers call a "charge back". Under the Uniform Commerical Code, in endorsing the check, you represented and warranted to everyone, including your depository bank, that the check was valid. Unbeknowist to you and the bank, this was not the case. Therefore you breached that warranty, and your bank has the right to charge the check back to you.

Ultimately, you are responsible for the activities within your own bank account. Go after your customer.
 
Similar circumstance with stopped check

I had a similar experience. Sold a painting to a client. Delivered it to their home. They gave me a check. I deposited it in the same bank as it was drawn on. THe bank manager said that the funds were available, and I could use them the next day. I made an electronic payment of my own for the amount the next day. The online account records said the funds were available, and that the payment transaction was complete. THE NEXT DAY, the clinet stopped payment on the check. I received the check and anotice five days later. I immediately notified the client that he owed me the money. [The sales bill had been marked final.] ALthough the bank's 'contract' as stated in their booklet says that the stop payment must be received in time, and that it must be placed in sufficient time prior to the deposit of the check to allow for admilnistration, the bank then debited my account the amount. I wrote to them several times, but received only form letters back. Then they cancelled my account, and paid off the amount to do so, since they said they can't close am account with a negative balance. I am expecting a legal action from them. What do you think, and what rights do I have here? LA
 
leah allison said:
I had a similar experience. Sold a painting to a client. Delivered it to their home. They gave me a check. I deposited it in the same bank as it was drawn on. THe bank manager said that the funds were available, and I could use them the next day. I made an electronic payment of my own for the amount the next day. The online account records said the funds were available, and that the payment transaction was complete. THE NEXT DAY, the clinet stopped payment on the check. I received the check and anotice five days later. I immediately notified the client that he owed me the money. [The sales bill had been marked final.] ALthough the bank's 'contract' as stated in their booklet says that the stop payment must be received in time, and that it must be placed in sufficient time prior to the deposit of the check to allow for admilnistration, the bank then debited my account the amount. I wrote to them several times, but received only form letters back. Then they cancelled my account, and paid off the amount to do so, since they said they can't close am account with a negative balance. I am expecting a legal action from them. What do you think, and what rights do I have here? LA
Typically the rules regarding such transactions are outlined in your agreement with the bank. If you're telling me that the bank violated its own rules, I'd write them a letter and fax demanding credit for the check since it was the bank's error to remove the funds from your account after an individual wrongfully attempted to stop payment on a check that had already cleared. Wouldn't this seem logical?
 
Stop Payment Problems

Recently I encountered a client that needed a small speaker set up in a bar environment. I collected 50% prior to doing the project, next day installed the product and materials, collected the final payment that same day. Next day I deposited the check, the client called left voice mail stating that she was stopping payment unless I fix her complaint. I called her asked her what she was upset about; her complaint was I used black staples instead of white. I offered to correct the issue after I completed my a.m. appointment with another client. She was agreeable to those terms. After the appointment I called her to inform I was on my way to the location to rectify her complaint. At that point she cursed me out and told to me to not bother coming, because she hired someone else and she figured that she didn’t owe me anymore. Now the check cleared her bank, the funds were collected from her bank and deposited in my account, but today those funds, $1,000 worth was taken from my account. How in the world can another bank take my money that I’ve earned? She also has materials that haven’t been paid for in full. Can I walk into this bar and take my equipment out? Where’s the protection for businesses? This is fraud as far as I’m concerned.
:angryfire
 
Status
Not open for further replies.
Back
Top