Recovering Bad Checks

[Grant]

I got a bad check from a honey customer. Thankfully, I've only had a few of these over the many years I've sold honey.

Their $40 check bounced and I was dinged $19 by my bank (and they took back the $40).

Not wanting to get dinged again on a bad check, I took the check to the local branch of their bank. I asked the teller if the check was good, and if it was safe for me to deposit the check back into my account.

The teller was very helpful and sympathetic. She told me she could not tell me how much money they had in their account, but she would tell me if they had enough to cover the check.

For two months (usually after the first of the month) I returned to the bank to be told they were still overdrawn. Finally, on the third trip, the teller told me they had the money in the account.

I said, "So it's safe for me to deposit the check at my bank?"

She said, "Yes, or I can cash it for you right now."

I did it her way.

Not knowing the customer, and not knowing if they would pay me if I confronted them with the check, I felt this was a better way of recovering a bad check.

Grant
Jackson, MO

[Chef Isaac]

that nice..... really nice of the banker. Here, they would not do that at all. I need to move to MO.

I have all my customers write their phone number down on the checks when they give it to me and I keep a small little sign that says a fee will be charge for bad checks. Covers my bases.

[Chef Isaac]

and by the way grant, i miss your e books!!!!

[oldenglish]

Try this,

http://www.cashflownow.org/badcheckrecovery.htm

[cheesegenie]

While in business for 25 years, I got more bad cheques than I wanted. Hard
to collect, and the bank charges on top. Also makes a good customer a
poor or no customer. The best thing was the interact machine, cost us 5%, but the money was always there. Looking back, I feel sorry for anybody in small business, the smaller the business, the harder the hit. I will give you
guys credit for hanging in there and trying to get an honest dollar from an
honest and hard dollar earned.

[KeyBeeper]

My wife is in a service business and she collects 4 weeks in advance in person. I'm sure this is not possible in most situations - but check your operation and see if it is possible. One thing about a service, you can't re-posses it, so it's about the only protection she has.

[FindlayBee]

What really gets me is that you get charged for someone else's bad check. Seems like they should charge the other bank account and not yours.

Here I can ask if there is enough in the account to cover the check. I cannot however find out how much is in the account. You know, adding an extra 0 to 100 and stealing money is part of that reason.

[CentralPAguy]

Remember folks, Banks are not friends of ours. They are there to pillage our accounts on all fronts inclusive of both sides of the transaction.

I am not sure if a Credit Union is much better. I try to think of them as a Bank.

[Camp9]

I did that once with a semi load of hay, too about 6 weeks, but when there was enough $$ in their account I ran the check through.

Camp

[Chef Isaac]

no, a credit union is NOT better

[berkshire bee]

I assume in this case, you couldn't contact the person. The good part is that you eventually got the check cashed but the bad part is you ended up with $21 of a $40 sale. One other possibility would have been to talk to your bank and see if they would waive the return fee. I accidentally used the wrong deposit slip once, then wrote a check to another bank, thinking their was enough money in my account. I got a double whammy and charged by both banks. When I realized what had happened, I went to the banks and explained, with proof of my good intentions and both banks waived the fees.

[Jeffrey Todd]

Regarding bad checks and bank fees: I would shop for a GOOD credit union. Mine charges only $2 for a deposited check that has insufficient funds. I would even be sure to let the manager of your current bank know that you will be taking your money elsewhere because of the outrageous fee they are charging you for someone else's bad check.
He might be inclined to refund your money and not charge you for future bad checks, but if not, good riddance.
CentralPA guy is right; bankers are like thieves, pirates, or politicians in that they separate you from your money without giving you anything in return. Exercise your free-market rights and find someone who values your business.

[Deeptime]

I'm curious, If you specifically ask, or better yet, have included on the bill of sale, a signed statement that they confirm that there are suffucient funds to cover the check, does that then make them guilty of some law for theft by wilfull misrepresentation?

[peacekeeperapiaries]

Here in FL it is a crime to write a bad check, I am sure it is the same in most other states. I suggest getting a DRIVERS LICENSE number written on the check along with a phone number, and physical address (PO BOX is no good). FL courts will not prosecute without a DRIVERS LICENSE number. With proper information you might be able to contact the person and recoup your bank fees.

[PCM]

Here in FL it is a crime to write a bad check, I am sure it is the same in most other states. I suggest getting a DRIVERS LICENSE number written on the check along with a phone number, and physical address (PO BOX is no good). FL courts will not prosecute without a DRIVERS LICENSE number. With proper information you might be able to contact the person and recoup your bank fees.

Are you sure it is the courts will not prosecute with out a drivers license, or your local political County Prosecutor.

Here the local Clown County Prosecutor won't prosecute a bad check unless it has the writers Birthday written on it.
Don't know were he gets the athourity to do this ??
So if you can write a check in this Co. without your Birthday on it your home free !

PCM

[charmd2]

St. Clair co. It's drivers license number, date of birth and phone number..

[alpha6]

The reason some DA's say they won't prosecute is that they need the information in order to file a complaint on the person. Without it, they cannot file properly. That said, if you fail to get the information take what information you have and go to you local police fraud dept. (Smaller towns may only have one or two Det.'s so they do all the criminal work) Explain to them what happened and ask that they obtain the info for you and tell them you want to file a complaint against the person. A crime has been committed, so they have to do this for you. If they will not, don't argue with them, just go to a supervisor and tell them you are the victim of a crime and that the dept. if refusing to take a complaint. If they still won't do it then go to the DA's office and tell them the same thing. You should get help one way or the other.

[randydrivesabus]

I once got a bad check from a woman who bought about $20 of pumpkins from me at the farmers market. I even helped her load them in her car. When the check bounced I called her up and read her the riot act and demanded that she replace the check and my bank fee. The riot act means I told her how hard I work to grow the stuff i sell. She sent me a replacement check including my bank fees. But from her side those turned out to be very expensive pumpkins.

[devdog108]

I use to deal with banks and processing every day of the week. In todays banking industry, the checks should clear overnight. If they do not, your bank is holding the checks to earn interest off of the $$ overnight.....just trust me on this one. I now have my wife take the checks she is written to the customers bank, and we only accept local checks any more. They do get hit with their bounced check fee, and if my bank will not waive ours, then we charge them for it as well....

[Skinner Apiaries]

Ok. So in NC its a crime blah blah blah. Here's the nice part, conviction here usually goes like this, so and so gets subpoenaed, A charge has been filed of course, the judge says here's how its gonna work, you pay the check amount and any damages i.e. bad check fees, or you're going to jail. If you don't have the money by end of this court session, you're going to be convicted, and go to jail. So usually here they pony up find a wad of cash, pay us, and the judge usually dismisses, because hey, I got my money, and I don't really care if you go to jail, been there got the Tshirt, didn't do anyone any good.

As far as banks, Wachovia is the devil here, they charge ridiculous fees for everything you can imagine, I have a friend that works there and says "don't bank with us, we're crooks." I also hate banks that charge me a fee to cash a check from THEIR bank, because I don't have an account with them. I've often considered opening one and closing it immediately thereafter, or getting my lawyer college buddy to help me sue over some pointless little fee just to make a point. I mean he'd get free beer out of it, and I'd get to insult a bank... God I hate banks. /End rant.

[m.zook]

[QUOTE=Skinner Apiaries;480673]
As far as banks, Wachovia is the devil here, QUOTE]

:lpf: Here to!! Banks spend millions of dollars building computer program that know how to cause someone on a tight budget to overdraft.. It is a 34 billion dollar business just in overdrafts an nsf charges.:eek:

[devdog108]

remember this....they HAVE to run credits before the run debits...PERIOD. There are many banks that try it the other way though....BOA was one that was busted to pieces for it

[mythomane]

Know that ErnieW50 has written a few bad checks to people on this forum, from old closed accounts. Never had any intention of paying up. He has taken me for $550+ for some HSC. He is now offering his services as a "pollinator" and is selling Global Patties. I am pretty sure that he does not even have any hives. Do not want others to get taken...

[Skinner Apiaries]

That sucks. You should go to the DOJ.

[Deeptime]

I had an interesting conversation with a retired banking buddy of mine. When I discussed this issue he said,"when we went from just covering cost (of a bounced checked) to looking at it as an income stream (for the bank) we kept raising the fee and made millions".