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RBP
12-20-2004, 02:21 PM
does anyone know the procdure for collecting on a bad chek from a customer,especially appropriate procedure to follow in Michigan.Any help would be greatly appreciated.

mtdman
12-20-2004, 02:24 PM
If it is over $100 you can file criminal charges. If less you have to collect on your own, maybe sue in court. I had a lady bounce a $200+ check a few years ago that wasn't going to pay up until I filed criminal charges at the sherriff's office, then she couldn't get the money to me fast enough. Did you try calling the customer yet and explaining they bounced a check? Most of the time people pay up without a fight, they are embarrassed. Make sure you collect the fees for the bounce as well.

Wil22
12-20-2004, 02:32 PM
I had this happen to me. When I recieved the bounced check in the mail I called the customers bank and asked was the money in the account and they said yes and I went immediately to collect my money.

RBP
12-20-2004, 02:44 PM
MTDMAN thanks for your reply.Yes i did contact the customer,she actually wrote me a new check but now that one bounced to.Now she refuses to answer her phone to me.The original bill was for 120.00.I then had to rebill her due to the fact that she was late.This brought the new balance to 135.00.After several trips to her house and the old checks in the mail story she wrote me a check for 135.00.However that check bounced and after visiting her house again a new check was issued including my charge for returned check.Now that check has bounced to and she refuses to open door or answer phone or reply to letter.her bill started out at 120.00 and is now up to 165.00(120.00+15.00 late fee+15.00returned check feeX2)I was wanting to know if this is a matter for the police or small claims court.

YardPro
12-20-2004, 03:13 PM
call the magistrate.
she's obviously having financial difficulties. file quick, cuase i'm sure you'll be in a line to collect.

here in NC writing a bad check is a crime no matter the amount. they will prosecute and they will collect through probation and you'll get your money plus fees.

Gatewayuser
12-20-2004, 03:30 PM
Sorry to hear about you having so much trouble with that customer, last month one of my customers gave me a bad check, they did'nt know their house payment was being electronically drawn from their checking starting that month, so they gave me a late fee and gave me a $15 tip and said they were sorry. I haven't had a problem since.

bobbygedd
12-20-2004, 03:35 PM
police. and when she gets the paperwork from the court, and tries to pay you, don't accept payment. make her go to court, ask the judge to prosecute!

muddstopper
12-20-2004, 03:48 PM
I recently had a bad check as well. Owner claimed they had a checkbook stolen and someone had written checks on their account. Whether this is true or not, they did make the check good. Even met me at their bank where I could take the new check inside and cash it on the spot. But someone writting as many bad checks as you have recieved is definatly criminal. Take the check to the magistrate and file charges. And In this case I would probably do as Bobby suggested, make sure they are prosecuted. I can see someone making a mistake once but two or three times, no way. One other suggestion is to make copies of all bounced checks when you recieve them. Usually the people that wrote the bad check will want it returned when they issue a new one. If you have copies you have evidence that this isnt just a one time occurrence aand the bounced check you are holding is actually a replacement for other bad checks they have written. Court is really tough on repeat offenders.

YardPro
12-20-2004, 03:48 PM
i think that's being somewhat of a jerk.
if she offers you payment plus your fee, accept it. don't drag her to court and cost her court fees, probation fee's etc......
sounds like she's having a hard enough time as it is.

the scaper
12-20-2004, 04:06 PM
I had a lady this year who owed me $130 way past the due date. She finally paid with a bad check. Well I tried to work with her but she kept putting me off again. So I took it back to her bank and they said I could take it to the state attorneys office and they would issue a warrant for her arrest and collect the money for me. I called and told her this and I got my cash in less than 20 minutes! payup

RBP
12-20-2004, 04:30 PM
I signed this lady up in the spring and she always paid,though a bit late.SHE also wrote me a bad check one other time but made good on that one.Towards the end of the season payments began to be later than usual and now this whole ordeal.I understand that she is obviously having financial troubles but the thing that kills me is that she has a teenage son living in her house and im sure he is more than capable of mowing the lawn himself.I mean she could have bought a lawnmower and had her son do it instead of hiring me and then jerking me around on payments and expecting me to feel sorry for her.Its kind of like house cleaning,if you cant afford a maid then get off your lazy a$$ and do it yourself,ya know.nO WAY AM i Eating this one I will get my monet somehow.

mtdman
12-20-2004, 04:32 PM
MTDMAN thanks for your reply.Yes i did contact the customer,she actually wrote me a new check but now that one bounced to.Now she refuses to answer her phone to me.The original bill was for 120.00.I then had to rebill her due to the fact that she was late.This brought the new balance to 135.00.After several trips to her house and the old checks in the mail story she wrote me a check for 135.00.However that check bounced and after visiting her house again a new check was issued including my charge for returned check.Now that check has bounced to and she refuses to open door or answer phone or reply to letter.her bill started out at 120.00 and is now up to 165.00(120.00+15.00 late fee+15.00returned check feeX2)I was wanting to know if this is a matter for the police or small claims court.

Go to the police, immediately. I had to go to the county sherriff's office to file. It's illegal and the police will go find her and arrest her. If the cops show up she will get the message and pay, as long as she can. She's counting on you to drop the matter and not know what to do. Now you know, go do it.

YardPro
12-20-2004, 05:04 PM
i agree and totally support going through the cops. my ststement about accepting her payment was IF she wanted to pay you before she went to court. If she does that they will generally dismiss the charges, or at least waive court costs, etc.

it was in response to bobblehead's remark about not accepting her payment and making her go to court etc.

mtdman
12-20-2004, 05:09 PM
i agree and totally support going through the cops. my ststement about accepting her payment was IF she wanted to pay you before she went to court. If she does that they will generally dismiss the charges, or at least waive court costs, etc.

it was in response to bobblehead's remark about not accepting her payment and making her go to court etc.

Honestly, I never read what you wrote, just RBP's post. When I went to the cops, the lady immediately called me and wanted to bring me the money. I told her to bring cash and accepted it. If you can avoid going to court, do it. No sense clogging things up. Most likely the scare with the cops is enough. Bobby is just a jerk and likes playing rough.

:D

YardPro
12-20-2004, 05:13 PM
i didn't think you took it the wrong way
i thought rpb may have

and i agree with you on both issues,
going to the cops, and bobby... :)

Soupy
12-20-2004, 07:13 PM
I could be wrong but I think if someone offers you your money in full you have to take it. The amount you are sueing for will be listed on the summons, If they offer to pay it and you refuse, The judge is going to want to know why.

coastallandscapesolutions
12-20-2004, 07:29 PM
police. and when she gets the paperwork from the court, and tries to pay you, don't accept payment. make her go to court, ask the judge to prosecute!

I hear a shovel works well too....

RBP
12-20-2004, 09:57 PM
Ok it sounds like I need to go to the police.Before I do this is there anything I need to do,such as send her something certified mail stating check has bounced.Seems to me she would know her check bounced just by her bank contacting her.thanks to everyone for all the replies concerning this issue.

bobbygedd
12-20-2004, 10:01 PM
you must send one letter certified, and the same letter again, standard mail. enclose a copy of the bounced check. wait 10 days, proceed with CRIMINAL COMPLAINT at police station

Soupy
12-20-2004, 10:10 PM
Ok it sounds like I need to go to the police.Before I do this is there anything I need to do,such as send her something certified mail stating check has bounced.Seems to me she would know her check bounced just by her bank contacting her.thanks to everyone for all the replies concerning this issue.

You mean you have not contacted her about this. Crap happens, I would give her a chance to make things right before hanger her for it. I have a customer that is a loan officer at a large bank. Her check came back once and when I called her she said that her Ex Husband bounced his $800 child support and it through her off a little but she had already corrected the mistake by switching money from another account. She told me to go ahead and send it back through and add a fee on the next invoice.

My point is, I doubt that this lady (being a loan officer at a bank) would go around writing bad checks on purpose and sometimes things just happen. I would be lying if I said I never over drawn on a bank account (although it was my wifes fault :) ) But my bank covered the check so the person the other end had no clue.

hole in one lco
12-20-2004, 10:19 PM
she knowingly sent you a bad check in the mail . That is mail fraud which is a serious offense just tell her that and you will get your money

Soupy
12-20-2004, 10:27 PM
You mean you have not contacted her about this. Crap happens, I would give her a chance to make things right before hanger her for it. I have a customer that is a loan officer at a large bank. Her check came back once and when I called her she said that her Ex Husband bounced his $800 child support and it through her off a little but she had already corrected the mistake by switching money from another account. She told me to go ahead and send it back through and add a fee on the next invoice.

My point is, I doubt that this lady (being a loan officer at a bank) would go around writing bad checks on purpose and sometimes things just happen. I would be lying if I said I never over drawn on a bank account (although it was my wifes fault :) ) But my bank covered the check so the person the other end had no clue.

I apologize for my last post. I went back and seen were you have contacted her and she then wrote you another bad check. I thought you didn't contact her because of the quote below.

Ok it sounds like I need to go to the police.Before I do this is there anything I need to do,such as send her something certified mail stating check has bounced.Seems to me she would know her check bounced just by her bank contacting her.thanks to everyone for all the replies concerning this issue.

lawnman_scott
12-20-2004, 10:33 PM
she knowingly sent you a bad check in the mail . That is mail fraud which is a serious offense just tell her that and you will get your money
How did she knowingly do that? Maybe the money was there when she mailed it. Good luck on mail fraud. This site is very comical at times.

bobbygedd
12-20-2004, 11:13 PM
How did she knowingly do that? Maybe the money was there when she mailed it. Good luck on mail fraud. This site is very comical at times.
no, male fraud is what ric is guilty of, ever since his sex change. anyhow, how can it be "mail fraud?" i'm confused

the scaper
12-20-2004, 11:39 PM
For cryin out loud, call the cops and they will tell you exactly what to do according to the laws in your state. she wrote a bad check... period. Lol!

the scaper
12-20-2004, 11:47 PM
no, male fraud is what ric is guilty of, ever since his sex change. anyhow, how can it be "mail fraud?" i'm confused
Lol! I think he might have meant check fraud.

hole in one lco
12-21-2004, 12:26 AM
it is both send a bad check to the irs and see what happens

hole in one lco
12-21-2004, 12:31 AM
no, male fraud is what ric is guilty of, ever since his sex change. anyhow, how can it be "mail fraud?" i'm confused

the law says if you knowingly send a bad check in the mail its mail fraud look it up She knows what she did cuz she did it two times

lawnman_scott
12-21-2004, 04:24 AM
it is both send a bad check to the irs and see what happens
Well actually I sent them a check from the wrong account once. After it bounced they sent it back to me and told me to reissue it and charged me $15. What did you think would happen? Federal agents break down the doors in the middle of the night?

bobbygedd
12-21-2004, 08:19 AM
MAIL FRAUD: a land mass, surrounded by water on threee sides

lawnman_scott
12-21-2004, 08:33 AM
MAIL FRAUD: a land mass, surrounded by water on threee sides
No, thats a peninsula. Mail fraud is INTENTIONALY commiting a crime using the us mail service. And most of what is mentioned here is as close to a peninsula as it is to mail fraud.

meathead1134
12-21-2004, 09:05 AM
You know what else sucks. I also got a bad check and it was my wedding gift. The worse part is I work with the person. I never confronted her about it though.

rhowerton
01-10-2005, 09:41 PM
Just to let anyone know who might be interested, I also run a company that collects nsf checks via RCK or electronic check recovery. You don't need anything from the person, but before you could go after checks, it is wise to have something presented to the customer stating that you can electronically represent the check.

topsites
06-13-2005, 07:52 PM
does anyone know the procdure for collecting on a bad chek from a customer,especially appropriate procedure to follow in Michigan.Any help would be greatly appreciated.

Did a search on Google for:
http://www.google.com/search?q=insufficient+funds+letter+law&hl=en&lr=&start=10&sa=N
And crawwwled through the results for you.

Out of which the ones I liked the most is:
http://law.freeadvice.com/general_practice/contract_law/contracts_checks_insufficient_funds.htm

And:
http://www.co.fairfax.va.us/ps/police/police35l.htm
http://www.co.fairfax.va.us/ps/police/police35n.htm

This may or may not apply in your state, but the best place to find these documents and helpful stuff is at your County Website.
Peace out, and good luck!

C&KLawnCare
06-13-2005, 08:39 PM
Civil Penalties by States

The following information may be out of date when you read this. Check with your state statutes for current law.

Alabama. Greater of $10 or actual bank charges.

Alaska. The bidder may recover damages in an amount equal to $100 or treble the amount, whichever is greater, except that damages recovered under bad check law may not exceed the amount of the check by more than $1000.

Arizona. Twice the amount of the check or $50, whichever is greater, costs of suit, reasonable attorneys' fees.

Arkansas. Amount due, service charge not to exceed $10. On stop payment, 15 days following written demand to drawer's last known address, holder may collect fee not to exceed $15; failure to make restitution and pay collection fee will result in liability of twice the amount of check but in no event less than $50.

California. Amount due, damages of treble the amount so owing, but in no case less than $100 or more than $500.

Colorado. Treble the amount of such check and in no case less than $100, including reasonable fees.

Connecticut. Amount of check plus lessor of: if no bank account - $750 or amount of check; or if insufficient funds - $400 or amount of check. Statutory form of notice must be sent at least two times. Statute does not apply to certain consumer services.

Delaware. Amount due, costs of suit, protest fees.

District of Columbia. Amount due, protest fees.

Florida. In event of failure to make payment within 30 days after demand, treble amount owed in addition to the amount owed together with bank and court costs and reasonable attorneys' fees, not less than $50 and no more than $2,500. If payment is made in 30 days, a service charge of $10 or 5% of face amount of check, whichever is greater, can be added. In stop payment action, reimbursement for actual travel expenses to holder or agent for filing papers, and for traveling and providing witnesses to an from proceeding.

Georgia. Upon 30 days following certified written demand by payee to maker, the maker shall be liable to the payee for damages of double the amount owing on the check not to exceed $500 and service charge not to exceed $15.

Hawaii. Amount due, costs of suit, protest fees.

Idaho. $100 or treble the amount of the check, whichever is greater, but not more than $500 greater than the amount of the check.

Illinois. Treble amount of check but not less than $100 nor more than $500 plus attorney's fees and court costs.

Indiana. Treble amount of check not to exceed $500 plus amount of check, attorneys' fees of not less than $100 and interest at 18% per annum.

Iowa. Treble amount of dishonored check but not to exceed amount of check plus $500.

Kansas. Giver of worthless check is liable for the amount of the check plus an amount equal to the greater of the following: (a) treble the amount of the check, but not exceeding the amount of the check by more than $500; or (b) $100.

Louisiana. Drawer of dishonored check who fails to pay 30 days after written demand delivered by certified or registered mail is liable for damages in twice the amount owing but not less than $100 plus attorneys's fees and court costs. Payee may charge service charge not to exceed $15 or 5% of the face amount of the check, whichever is greater. District Attorney can collect fees for issuance of worthless check, depending on amount of check.

Maine. Amount due, court costs, service costs, collection costs, processing charges can be recovered only if statutory notice given, or payment within 10 days of notice.

Maryland. Amount due, $15 fee, and amount up to two times the amount of the check, but not more than $1,000. Holder may claim damages 30 days after mailing notice of dishonor to last known address of maker or drawer.

Massachusetts. Amount due, costs of suit, protest fees.

Minnesota. Amount due, $100 penalty, interest (at judgment rate), reasonable attorneys' fees if amount of check over $1,250, $15 service charge.

Mississippi. Amount due plus additional damages of 100% on checks up to $25,000, 50% (not to exceed $50 or fall below $25) on checks on $25 to $200, and 25% on checks over $200.

Missouri. Greater of treble face amount owed or $100. Damages should not exceed $500.

Montana. Service charge plus the greater of $100.00, or three times the amount of the check, but not to exceeed the value of the check by more than $500.00. (MCA 27-1-717.)

Nebraska. Amount due, costs, protest fees.

Nevada. Amount due, protest fees treble amount of check but not less than $100 nor more than $500.

New Hampshire. Amount due, interest, court costs, reasonable costs of collection, and $10 per day (maximum is $50). If check issued to city or town, amount due, $15 fee plus protest, bank, and legal fees; if issued to state agency, amount due, $5 fee plus protest and bank fees.

New Mexico. Amount due, costs of suit, protest fees.

New York. Face value of check, plus two times amount of check up to $750.

North Carolina. Thirty days after written demand, lesser of $500 or treble amount owing on check, but not less than $100.

North Dakota. Amount due, collection fees not to exceed $10, and $100 or treble amount of check, whichever is less.

Oregon. When maker fails to tender amount due after written demand made by payee, payee may recover damages in an amount equal to $100 or treble amount of the amount for which the check, draft or order is drawn, whichever is greater, provided the amount is not greater than $500 over the due amount.

Pennsylvania. Upon written demand from payee following conviction for passing a bad check and failure to make restitution, the payee upon obtaining civil judgment is entitled to an amount equal to $100 or treble the amount for which the check is drawn, whichever is greater, not to exceed by more than $500 the value of the check.

Rhode Island. Amount of check plus fee of $25, plus amount up to treble amount of check but not less than $200 or more than $1,000.

South Carolina. In addition to other fines, issuer shall pay all reasonable court costs, not to exceed $20 and if payment not made within 30 days, issuer shall pay amount of check and damages, of the lesser of $500 or treble the amount of the check.

Tennessee. Treble amount of check, but not to exceed $500.

Utah. Amount due, interest and costs of collection, court costs, reasonable attorneys' fees.

Vermont. Court costs, amount of check, attorneys' fees, damage in amount of $50.

Virginia. Lesser of $100 or three times amount of check.

Washington. Lesser of amount of check or interest at 12%, and cost of collection not to exceed $40. If court action necessary after 15 days, lesser of reasonable attorneys' fees and treble face of check or $100.

West Virginia. Amount due, service charge not to exceed $10.

Wisconsin. amount of check plus actual damages and exemplary damages not to exceed treble face amount of check.

Wyoming. Amount due as well as damages equal to the cost of collection plus reasonable attorneys' fees.

C&KLawnCare
06-13-2005, 08:40 PM
Payments for COD or preexisting debt:
In most cases, NSF checks are not considered under the bad check law if they are used to pay an antecedent debt. Therefore, if a debtor gives a debtor an NSF check to pay a note payment or to pay an invoice that is on account, the act generally does not fall within the bad check law. However, if the debtor provides a creditor with a NSF check for a COD order, then that act does fall within the bad check laws.


Postdated Checks:
Section 3-104(2)(b) of the UCC, defines a check as "a draft drawn on a bank and payable on demand." A postdated check, since it is not payable on demand, does not satisfy this demand. Consequently, it has generally been held by most states that the giving of a post-dated check does not constitute a present fraud nor is it within the scope of the bad check laws.


Who is the guilty party?
The guilty party of a fraudulent check is usually the person who signed the check, but it could also be the person who fraudulently passed it on, or even a third party who endorsed and passed the check on to another.

topsites
06-24-2005, 12:51 AM
call the magistrate.
she's obviously having financial difficulties. file quick, cuase i'm sure you'll be in a line to collect.

here in NC writing a bad check is a crime no matter the amount. they will prosecute and they will collect through probation and you'll get your money plus fees.

Same here in VA. Under 200: misdemeanor. Over 200: felony.
I got a 55-dollar bounced check and here the procedure is you HAVE to send a Certified Letter (receipt requested) to them first before you can file any charges (the law in VA gives the customer a chance to make up for it).
Now in that letter I put the 5-dollar bank fee PLUS a 15-dollar processing fee (so 20 bucks extra for bouncing) but so far no reply (not even from the post office) which tells me she could be ignoring the cert. letter and now I gotta wonder what to do next thou I think I can soon go to the magistrate and yeah, I'm filing charges if I hear nothing further.

I haven't received the receipt back from the post office, they hold the letter for 15 days but it ticks me off because this tells me she's playing games. Ok, *maybe* she's just coming up with the money and knows what the cert.letter contains so waiting until the last day, but whatever...

topsites
06-24-2005, 12:52 AM
I recently had a bad check as well. Owner claimed they had a checkbook stolen and someone had written checks on their account. Whether this is true or not, they did make the check good. Even met me at their bank where I could take the new check inside and cash it on the spot. But someone writting as many bad checks as you have recieved is definatly criminal. Take the check to the magistrate and file charges. And In this case I would probably do as Bobby suggested, make sure they are prosecuted. I can see someone making a mistake once but two or three times, no way. One other suggestion is to make copies of all bounced checks when you recieve them. Usually the people that wrote the bad check will want it returned when they issue a new one. If you have copies you have evidence that this isnt just a one time occurrence aand the bounced check you are holding is actually a replacement for other bad checks they have written. Court is really tough on repeat offenders.

Well hell now wait a minute. The customer bounces a check with you, are you actually going to accept ANOTHER check from them??? !
Come on now...

topsites
06-24-2005, 12:55 AM
MTDMAN thanks for your reply.Yes i did contact the customer,she actually wrote me a new check but now that one bounced to.Now she refuses to answer her phone to me.The original bill was for 120.00.I then had to rebill her due to the fact that she was late.This brought the new balance to 135.00.After several trips to her house and the old checks in the mail story she wrote me a check for 135.00.However that check bounced and after visiting her house again a new check was issued including my charge for returned check.Now that check has bounced to and she refuses to open door or answer phone or reply to letter.her bill started out at 120.00 and is now up to 165.00(120.00+15.00 late fee+15.00returned check feeX2)I was wanting to know if this is a matter for the police or small claims court.

Well I dunno about your state but here in Virginia you have to send them a Certified Letter (return receipt requested) before you can do anything as far as pressing charges, and you should've sent that Certified Letter on the first bounced check because now you got 3 of these jokers and you're playing as much of a game as she is.
Yes, I know you didn't know it would bounce... But guess who else 'didn't know?' Seriously, someone bounces a check you do NOT accept another check, ever.
Cash, Money Order or Cashier's Check.

topsites
06-24-2005, 12:58 AM
Honestly, I never read what you wrote, just RBP's post. When I went to the cops, the lady immediately called me and wanted to bring me the money. I told her to bring cash and accepted it. If you can avoid going to court, do it. No sense clogging things up. Most likely the scare with the cops is enough. Bobby is just a jerk and likes playing rough.

:D

Yeah but they're also going to pay an additional 75-dollar late fee if I so much as have to show up down at the courthouse, after all the trouble with the certified letter I'll be damned if I'm going through all this rigmarole for their convenience, no matter how nice they act, everybody turns real sweet all of sudden when they start to hear talk about jail.
After all, the money that is owed is for work already performed and does not include all this extra crap.

Richard Martin
06-24-2005, 05:50 AM
www.olddebts.com will help you collect on your bad check and put it on her credit record if you like.

www.olddebts.com