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  1. #1
    Join Date
    Jul 2009
    Posts
    1

    Question Customer Stopped Payment on a Check

    Hi,
    I own a small business (Wholersale/factory) and we do not offer terms, on a net 30... So I offer terms using a check or ccard. In this case, a landscaper came in and placed an order wrote a check for the full amount, we filled half then.. He was to come back the next week to pick up the balance and at that time I was going to deposit the check... but then, He asked if I would hold it for a few days, I said for 10 days... So in ten days I call to let him know I was going to the bank with the check... He said ok... I recieved the check back marked "payment stopped"... Since we have called and left messages. I am at the end of the line on this..

    I feel that he is a criminal in the following ways...
    1. Check Fraud
    2. Theft by Deception
    3. It was $1,000.00 so would it be a fellon?
    4. He has since sold the goods.

    What should I do? do I call the Police, or go to the county courthouse and file something?
    Thanks,
    Small business owner... Craven

  2. #2
    Join Date
    Mar 2009
    Location
    Key West, FL
    Posts
    2,350

    Default Re: Check Fraud How Do I

    Stopping payment on a check without adequate legal justification is a crime. It is no different than issuing a check NSF. Due to the amount it would be a felony. It is a fraud and theft, plain and simple.

    Go immediately to the police or the DA/States Attorney. The DA/SA office often has a check section. They can look at his account and I bet it will show he never had the money or spent it elsewhere which will show intent.

    Also you should sue him in small claims court. Obviously it is way past working things out. You don't have to wait for the criminal charges, though it might help. However, if you wait, chances are there will be nothing to find at that point to execute a judgment against.

    I know you tried to be a nice guy, but that is probably the last time. Never hold a check like that for anyone. In the ideal world he would have done his landscape job, collected the money and put it in the bank to cover the check.

    However, any business person juggling things like that is on the edge or already over it and probably the money went to other things more pressing. Once the spiral starts....

    P.S. And you know he got a deposit or upfront payment on the job and DID NOT use that to pay for the materials. He was shafting you from the very beginning.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Customer Stopped Payment on a Check

    As you were told when you posted, laws are different in every state.

    If you wish to file a police report, go right ahead. The police may determine that it's a civil matter, or they may run it past a prosecutor to evaluate whether charges should be filed.

    I suggest suing him in small claims court.

  4. #4
    Join Date
    Aug 2009
    Posts
    9

    Default Re: Customer Stopped Payment on a Check

    call the police, they will determine... sounds along the lines of theft, pretty stupid of him to leave an identifiable check w/you, to be honest your stores insurance would probably cover something like that, once you get a police report w/number and all that, you should call your stores insurance provider also and file a claim or write it off with the rest of the write offs.

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