Bad check

Discussion in 'Business Operations' started by dtelawncare, May 6, 2007.

  1. dtelawncare

    dtelawncare LawnSite Member
    Messages: 227

    Well, I had my first payment from a customer be no good. I have been in business about a year and a half and this was the first. It was for $355. My Credit Union sent me the letter about it. I know I should have gotten all this in order already, but I don't know how to handle this. He was late on paying me to start with. Said he had ran into some cash flow issue waiting on payment from his own customers. He owns a business out of state and that makes it hard to catch him other than voicemail. He wrote me a bad check out of his business. He had to have known the check was no good when he give it to me.
  2. Woody82986

    Woody82986 LawnSite Silver Member
    from DFW, TX
    Messages: 2,128

    Well the first thing to do would probably be to contact him and talk to him about it. See what the deal is and figure out how he plans on paying you for the services you have rendered. Go from there.
  3. howardsells2000

    howardsells2000 LawnSite Senior Member
    Messages: 355

    I agree with Woody, sometimes we make mistakes. He may fix the problem right away. Make sure you add the bounced check charge onto his bill. My bank charges me $5.00 for any checks that bounce. It has only happened a few times with my customers but after letting the customer know about the bank charge, they have always agreed to pay it.
  4. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    [Headers (date, addresses, etc)]

    Dear customername,

    Your check in the amount of $ has been returned due to insufficient funds. The bank will not allow redeposit of the check since it has already been presented on two occasions.

    Would you please forward the amount of the check, plus the $xx fee for the service charge for returned checks, to:
    (name of firm)

    We must ask that this amount of $ be paid by either cash, certified check, or money order.

    If you have any questions, you can contact me during office hours.

    Thank you.
  5. procut

    procut LawnSite Bronze Member
    Messages: 1,852

    First contact him, see if he will go good on it.

    I'm not sure what the laws are in your state, but in MI any bad check over $25.00 is a felony. Go down to the cop shop, tell them someone gave you a NSF check. They will give you what is called a five day notice. You fill it out and send it to him via certified mail, read recipt requested. After he recieves it, he has 5 days to contact you to make good on it or make other arrangments. If he does not go good on it within that time, contact the police again, they will meet with you and get the details, and put out a warrant for him.

    Keep in mind this is how it works in Michigan, your state might be differant. Good luck!
  6. Flow Control

    Flow Control LawnSite Bronze Member
    Messages: 1,267

    Welcome to the club, we have gotten to the point of seeing a couple a year. Last year we had one for around 3k (it was an out of state check too) so I took it to the police station. Since it was an out of state check it was a more serious infraction. So give the guy a call, I am sure he will be embarrassed but more likely then not he will feel bad and want to get you your money asap. To wrap up the story from the check the LCO wrote me that bounced, he made good on that one but stiffed me for the remaining payment of 7k. Damn LCO's:dizzy:

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    You can call his bank and they can verify if funds are available. If so, re-deposit the check.
  8. Charles

    Charles Moderator Staff Member
    Messages: 8,984

    I know Bank Of America won't do that anymore. All they will tell you is whether the account is open. I don't know about the rest of the banks.

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