Stopping payment

[tthomass]

Quick version:

PITA customer.........finish the job, she writes me a check on Sunday. Calls me Monday and tells me she was inconvienced blah blah, I need to share some of her cost blah blah (her costs were her fault) and informs me she will be stopping payment and deciding what I should be paid.

So PITA woman to put it as polite as possible.

Check is for $3500, informs me she is stopping payment. Is this legal? Anything I can bust her on etc or do to get my $?

Its like a go buy a $7,000 turbo kit for my car. Call the shop and decide, hmph, what the heck, I'm gonna stop payment on that check and let you know what I decide to pay you for it.

I'll be seeing her in court before its over. I'm not informing her of that until I get what payment she decides I should recieve so that I've already got that $ in the bank. If I tell her ahead of time she won't pay anything.

Yes I've got her signature on a piece of paper.

[tjsquickcuts]

It takes 24 to 48hrs depending on the Bank for a stop payment on a check to post to the Banking System.....Go to her Bank, and just cash the Check....Don't Deposit it into your Bank, because by the time they process it, the stop payment will have already posted.....I think thats BS, and I would probably go undo all the work....LOL....Dang I hate Pita

[lawnman_scott]

I hope you tried to cash the check, tj is right it takes a day or two to put a stop payment through. Whatever partial payment you receive, keep the check, but DO NOT CASH IT.

[HOOLIE]

Typically how it works in court is, if you feel wronged (like this lady) the proper procedure is to pay the bill in full, then sue the contractor to recoup whatever money is disputed. By withholding funds from you, she is opening herself up to being sued by you. At least this is how the judge in small claims court explained it one day... You both agreed upon a price and she signed the deal, she is obligated to pay the full amount then if she has issues she can try to get you to refund a portion of it or take you to court. But she has it backwards...

Sure she can stop payment, her bank won't ask why. I hope this doesn't turn into a war :hammerhead:

[tthomass]

Her bank is in DC, 35 miles away. Justice Federal Credit Union.

There is a local branch but it is a "Non-teller branch" so I guess I can't cash it there. She's got some sort of job with the FBI and probably on a power trip.

Check was written on Sunday and tomorrow is Wednesday so I guess I'm SOL on cashing it.

I would just calculate the footage against the deduction and go remove that portion of the fence but as much trouble as she has given me I'm taking her to court even if its only $100. I'm guessing she will deduct $1,000 from the $3,500 total.

[dwc]

whatever you do, do NOT cash a partial check......It is the same as agreeing that what she paid you paid her account in full and shows that you willingly accepted partial payment as payment in full.
It doesn't look to me like she stands half a chance in court since she already sent you a check for the full ammount, that right there shows she agreed she owed you the money. Be sure to make a copy of the original check before cashing it and document everything that takes place. Time, date and what was said or done.

btw, if you go remove the fence or whatever from her property, she can legally have you arrested for theft.

Good luck!

[tthomass]

I know about the fence.........even though I look at it as she paid, for example, 80% of the fence, 20% is still mine since no payment has been received.

[dwc]

I know what you mean and I think that's the way it should be, they don't want to pay go get your materials, but I have been told even if they never pay they can still have you arrested because once you put something on their property it is legally thiers whether they pay or not.

[Uranus]

Should have told her not to stop it and you will be over later to drop it off. Then deposit it and hope it clears before she contacts you. If she calls manday afternoon looking for you say you'll be there firtst thing in the morning. Tell her it will save her the $25 to do a stop payment. Be nice but blow her off till it clears. that way you get your money. Next time of course.

[tthomass]

Live and learn.

Originally there was no contract, only verbal as she was a past customer. I renovated her small front yard landscape for around $6,000. A little annoying but otherwise good customer. After we ran into issues with her on the fence I noted all changes, at my cost, and had her sign stating the full amount of $3,500. Then I had documentation and glad now that I got her to sign.

[tthomass]

Oh yeah, her neighbors are also my customers. Large perennial install for one and pending multiple landscape/hardscape projects with the others. I spoke with them and explained the situation once she started going "wack" to prevent her from rubbing my name in the mud because they are good customers....actually great customers.

It just keeps gett'n better doesn't it!

[lawnMaster5000]

I don't know the specifics of the laws, however in most states it is illegal to write a check that is not valid (or will bounce). If she wrote the check for payment and canceled it I don't see why that would be any different. I believe it is fraud.

Contact your local police department and tell them she wrote you a bad check. Have the bank documentation in hand. Here they will put a warrant out for her arrest until the case is cleared.

You don't even have to waste any more of your time with small claims. The prosecutor will do it for you - in real court.

[HOOLIE]

Found this link http://findarticles.com/p/articles/mi_m0DTI/is_4_27/ai_60036404

About payment disputes. Although sounds like this lady is not supplying you with ANY check...just watch out if one shows up marked 'paid in full'

[tjsquickcuts]

I don't know the specifics of the laws, however in most states it is illegal to write a check that is not valid (or will bounce). If she wrote the check for payment and canceled it I don't see why that would be any different. I believe it is fraud.

Contact your local police department and tell them she wrote you a bad check. Have the bank documentation in hand. Here they will put a warrant out for her arrest until the case is cleared.

You don't even have to waste any more of your time with small claims. The prosecutor will do it for you - in real court.

You can legally stop payment on checks and credit cards....thats why the banking institutions allow for their customer to do this.....its really to protect the customer....but either way it goes, she is still no right.....Also remember, each state is different in the way it interpret laws....Good luck!

[MarcSmith]

better make the trip in to DC....might be worth 3500....althoug if the check is made out in the business name, in most cases banks will not cash the check...You could alway go to a check cashing store and give up the 10% and let them deal with the problem...:)

if she gives you a partial, check, I would note on the memo section as a partial payment and then send her in invoice for the balance due.... with a copy of the signed agreement. At that point mention small claims court....

I woudl still cash the check....

http://moneycentral.msn.com/content/Banking/Betterbanking/P123333.asp

from sate code of VA

§ 18.2-181. Issuing bad checks, etc., larceny.

Any person who, with intent to defraud, shall make or draw or utter or deliver any check, draft, or order for the payment of money, upon any bank, banking institution, trust company, or other depository, knowing, at the time of such making, drawing, uttering or delivering, that the maker or drawer has not sufficient funds in, or credit with, such bank, banking institution, trust company, or other depository, for the payment of such check, draft or order, although no express representation is made in reference thereto, shall be guilty of larceny; and, if this check, draft, or order has a represented value of $200 or more, such person shall be guilty of a Class 6 felony. In cases in which such value is less than $200, the person shall be guilty of a Class 1 misdemeanor.

The word "credit" as used herein, shall be construed to mean any arrangement or understanding with the bank, trust company, or other depository for the payment of such check, draft or order.

Any person making, drawing, uttering or delivering any such check, draft or order in payment as a present consideration for goods or services for the purposes set out in this section shall be guilty as provided herein.




There are specific rules for stopping payments on checks that you've written.

According to the Uniform Commercial Code Section 4-403(a), an oral stop payment order is binding on the bank for 14 calendar days. Section 4-403(b) says that if you confirm the stop payment order in writing within the fourteen days, the order is binding for 6 months and may be renewed in writing for another 6 months.

Pre-authorized transfers: Up to 3 business days before the transfer is scheduled to occur, the consumer can stop payment by notifying the bank orally or in writing.

It's important to be aware of the potential risk when authorizing Electronic Funds Transfer (EFT). On an EFT, your liability for an unauthorized withdrawal is limited to $50 if you notify the financial institution within two business days after learning of the unauthorized withdrawal. However, you could lose as much as $500 if you do not tell the bank within two business days after learning of the withdrawal.

Additionally, if you do not report an unauthorized transfer that appears on your statement within 60 days after the statement is mailed to you, you risk unlimited loss on transfers made after the 60-day period. That means you could lose all the money in your account plus your maximum overdraft line of credit.

http://www.bankersonline.com/operations/guru2006/gurus_op100206a.html

good luck my freind....

[tthomass]

Thanks for the quotes Mark.

Time to get to studying........my Dad has dealt with crap like this for over 30yrs with his retail furniture store. We personally know plenty of judges and lawyers from which to learn how to approach with the most "bite". Looking forward to some meetings this weekend!

[tjsquickcuts]

I correct my earlier post....talk to my account, and she said that it is illegal to write a check for services rendered and cancel it without a legitimate reason.....unless she can prove it was necessary to cancel her check.....Right now, the law is on your side....so good luck, but move quick as time is precious