Can someone enlighten me about "bounced checks"

Discussion in 'Community Discussion' started by MBHockey, Sep 23, 2007.

  1. macrumors 68040

    MBHockey

    Joined:
    Oct 4, 2003
    Location:
    New York
    #1
    I'm just curious...if someone writes me a check, and i cash it....but the other party doesn't have enough funds to cover the amount...who gets screwed? Do i still get the money, and the bank goes after the person?

    Or does the bank say, sorry, there's not enough funds...you have to go get a new check?

    I ask because I am figuring out how to get a refund from this guy (whom I've met in person, and know where he lives) and he said he will give me a check. What happens if this check bounces? Do I have to seek legal recourse, or do i still get the money and my bank goes after him?

    Just trying to understand the situation :p
     
  2. macrumors 603

    siurpeeman

    Joined:
    Dec 2, 2006
    Location:
    the OC
    #2
    if you think the person might not have enough funds to cover what he owes you, just refuse to deal with checks. you really don't want to deal with the hassle of a bounced check (i think you get charged, too) either. demand cash, a money order or a cashier's check from a bank. even paypal would work.
     
  3. macrumors G4

    skunk

    Joined:
    Jun 29, 2002
    Location:
    Republic of Ukistan
    #3
    Depends on the payer's relationship with his or her bank, but if in doubt, don't accept a cheque, or wait until it has cleared.
     
  4. macrumors 68020

    Macky-Mac

    Joined:
    May 18, 2004
    #4
    for the most part, that's how it works........his bank might fine him, you could complain to the police about his having knowingly written you a bad check, stuff like that, but the bank sure isn't going to give you the cash if the check is bad.
     
  5. macrumors 6502a

    Joined:
    Jan 13, 2005
    Location:
    Colorado
    #5
    I've had this happen one time and I can assure you that the bank will take the money back out of your account. I got really screwed because I deposited a several hundred dollar check (I was realy sure it was a good check, stupid me), then went out and spent the money on things. Well, the check wasnt any good, so the bank took those funds back out of the account and then all that spending I did... yep, all those transactions bounced. Plus I had to pay a TON in fees. In fact, the fees almost added up to the amount of the bad check.

    Unless you are sure the check is good, try to get the money some other way. Its just not worth the extra hassle or potential extra cost to you.

    Just my 2 cents.
     
  6. macrumors G4

    skunk

    Joined:
    Jun 29, 2002
    Location:
    Republic of Ukistan
    #6
    I hope that's cash.
     
  7. macrumors demi-god

    Joined:
    Oct 14, 2005
    Location:
    Virginia Beach
    #7
    My roommates check bounced once, and *MY* bank (SunTrust) charged me an $8.00 service fee. I guess that's how much it cost the teller to stick the bounced check in an envelope and mail it to me. :shrug:
     
  8. adk
    macrumors 68000

    adk

    Joined:
    Nov 11, 2005
    Location:
    Stuck in the middle with you
    #8
    I would highly recommend not taking a check from somebody unless you truly trust them. If he insists on writing a personal check, I guess you could meet the guy at his bank (whatever the bank on the check is) and try to cash it while he's still around, as if you cash it at his own bank they'll instantly know whether it's good or bad.
     
  9. macrumors 65816

    CorvusCamenarum

    Joined:
    Dec 16, 2004
    Location:
    Birmingham, AL
    #9
    You can always call his bank and see if it will be good before you try to deposit it. Alternatively, you can go (try to) cash it at his bank, then deposit the cash in your own bank.

    It used to be that you could float a check for a couple days (write a check on Wednesday against your paycheck on Friday) but with the streamlining between banks now it's a lot harder. We don't even take checks per se anymore at my business; it's all done through EFT.
     
  10. macrumors 68000

    technicolor

    Joined:
    Dec 21, 2005
    Location:
    ><><><><
    #10
    Your bank may charge you for cashing a bounced check. I always takes personal checks and cash them at the bank it was drawn on if at all possible. Then deposit the cash into my account.
     
  11. macrumors 603

    Markleshark

    Joined:
    Aug 15, 2006
    Location:
    Carlisle, Up Norf!
    #11
    Fort Dunlop cheques are a ball-ache. Don't accept cheques unless you trust the person.
     
  12. Guest

    garybUK

    Joined:
    Jun 3, 2002
    #12
    If they write their debit card number on the back of the cheque doesn't this guarantee the cheque for the amount they have a cheque guarantee for on their account?

    Also can't you just ask the bank to represent the cheque. You couldn't be charged, it's the guy who will be charged.
     
  13. macrumors 603

    Markleshark

    Joined:
    Aug 15, 2006
    Location:
    Carlisle, Up Norf!
    #13
    The bank will automatically represent the cheque once (twice?), if there are still no available funds it will bounce again and you'll both be charged.
     
  14. macrumors 68020

    Joined:
    May 24, 2007
    #14
    i'd just ask for cash if i were you. if the cheque bounces the bank won't pay you. of course you can sue on the bounced cheque itself (at least you can in the UK) but that's just a hassle.
     
  15. macrumors 68000

    yetanotherdave

    Joined:
    Apr 27, 2007
    Location:
    Bristol, England
    #15
    How on earth can the bank justify charging you for receiving a cheque that bounces? :eek:
     
  16. macrumors 68020

    Joined:
    May 24, 2007
    #16
    it's a nice earner! these sort of charges keep banking free for the rest of us :D
     
  17. macrumors G5

    CanadaRAM

    Joined:
    Oct 11, 2004
    Location:
    On the Left Coast - Victoria BC Canada
    #17
    Sorry, those are both mistaken assumptions.
    If there isnt any money in the account, he could write Paris Hilton's home phone number on the back and it still won't be honoured.

    Your bank will charge you anywhere from $5 to $25 as a service charge, AND summarily remove the face value from your account.

    From their point of view, you could just as easily be complicit in the scheme as a means to get your hands on the money for a few days before the worthless cheque came back.
     
  18. macrumors 68000

    yetanotherdave

    Joined:
    Apr 27, 2007
    Location:
    Bristol, England
    #18
    That's just bizarre to me. In the UK we're all busy taking our banks to court for unfair charges, and winning :D (being charged £30 for going over the overdraft limit etc, argument being that the charges are excessive, given that the banks are only allowed to charge for the admin costs, covering their other costs and making money by charging interest)
    I had a friend give me a bad cheque by accident once, I got a letter from the bank with the cheque in it, with a void stamp on it, and he got charged £40. I didn't get charged anything, and there would have been hell to pay if I did!
     
  19. macrumors 601

    Joined:
    Sep 5, 2005
    #19
    I can't remember the last time I used a cheque to pay for anything. Never mind receiving one… :eek:

    I think it was when I ordered the Christmas turkey from a farm a year ago… I think even they have changed to electronic ordering by now… :p
     
  20. macrumors 68020

    Joined:
    May 24, 2007
    #20
    garybuk was writing from a uk perspective. though not strictly relevant to this thread, a cheque guarantee card in the UK is a promise by the bank to pay the money if it within the amount stated on the guarantee card whether there is money in the account (or sufficient overdraft facility).
     
  21. macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #21
    This is exactly what you do. You call or go to the issuing bank and check funds first. I would simply call the second you get a check in hand if cash isn't made available to you.

    Your bank will most likely charge you. I got charged $25 when a payroll check bounced. I had checks against it and one check bounced. Having never bounced a check before I was devastated. I fought to get the charges waived but I still had that one bounced check on my record.

    Go to the issuing bank and cash it. Take the cash and go to your bank. Best advice yet.

    They just can. They consider having the ability to call the issuing bank and check funds before you cash it enough of a reason to charge *you* for not doing your due diligence. It's BS.
     
  22. macrumors 6502

    Joined:
    May 19, 2005
    Location:
    Escape from New England
    #22
    I don't think anyone mentioned yet the fact that in the USA writing a bad check is a form of fraud. You can take him to small claims court (fill out a few forms at the courthouse) and when he doesn't show up (they never do) you get a judgement awarded to you and his employer gets a nice letter from the court garnishing his wages to pay the debt. If this situation is all local, then all you need to do if he writes a bad check is send him a certified letter stating that his check was bad, he has 24 hours to pay you in cash or you will take him to court. You are really guaranteed to win this one UNLESS he is self-employed, and then it is practically impossible to garnish wages from someone. Just speaking from experience.

    The other thing I've had success with is calling his bank and telling them you have a check written for $(the amount) and you are wondering if it will be able to be cashed today. Varying success on that.
     
  23. macrumors demi-god

    Joined:
    Oct 14, 2005
    Location:
    Virginia Beach
    #23
    I thought you had to INTENTIONALLY write a bad check for it to be considered fraud?

    Also, if the check is for services rendered (vs. selling an item), the rules appear to change too (in court, that is). I watched a city attorney get her butt handed to her on a case where she was trying to get someone who wrote a check for city taxes that bounced. Since the check wasn't for anything "material", the judge hollered at her and dismissed the case. :confused:
     
  24. macrumors 68040

    Naimfan

    Joined:
    Jan 15, 2003
    #24
    Try writing "without recourse" right under your endorsement.....
     

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