Bad Check Writers

Greg Nichols · 10-27-09, 08:02

Hey gang,

How do you all handle a bad check. I got my first one and have filed a police report and they have 14 days to pay before a ticket is written. I wish I could tack on a fee, in additionally for all the hassle.

Cheers,
GREG

Jean-Claude · 10-27-09, 08:58

You can charge a fee for a returned check. My fee is $25.

If you've not already, I think it's fair to let the client know about the returned check PRIOR to filing a police report. I've had a client's returned check that was due to bank error.

I just called her up and said hey my bank said your check was returned. She asked me the soonest she could meet me and she brought the cash to me plus the $25. It doesn't have to be a difficult thing.

Greg Nichols · 10-27-09, 09:07

Good Point Jean-Claude, yes I've gone to the house and phoned her many times I only filed after she stopped working with me. I need to add a NSF charge to my web then I can charge. I assume the fee can be whatever I post? Anyone know of state laws that prohibit these fees?

Cheers,
GREG

Jean-Claude · 10-27-09, 09:37

Legally, I am not positive if you even have to post it. I can't think of too many people who bounce a check and argue the fee, granted that it's not outrageous.

todd@bsaw · 10-31-09, 06:43

Not sure about your local laws, but definitely seek any additional fees including bank fees you may have incurred from the returned check.

I currently work in collections for a financial company and have a lot of experience filing small claims cases and garnishments for unpaid accounts. Feel free to send me an email if you are looking to go this route and want help. It may take a few months to get your money back, but a lost dollar is a lost dollar and it's up to you if your time is worth it or not.

Got More Wax · 11-01-09, 07:15

In Colo, the fee schedule is $100 or three times the amount of the check, whichever is greater.

SoCalB6 · 11-01-09, 02:30

Here in LA county you first have to send a certified letter to the check writer letting them know that the check is bad and that you wish to receive payment asap. If they do not comply you then take them to small claims and have them served first, of course. The victim is entitled to claim up to 3x the check amount. FWIW, I ended up settling with the only bad check writer I have encountered for the check amount + $500, only AFTER they were served by the Sheriff.

unleashedfury · 11-01-09, 10:13

You have a right to charge a fee for a bad check. most common is like 25 bucks. I believe you can request a return of any NSF fees you may have encountered for the check also.

You stated about you tried to work with the customer and than the bailed on you. Civil court. If you win. They are entitled to repay you the fees encountered plus court costs.

Check your state laws. The state website. And make a few phone calls if you have to. Its always better to CYA than to end up in a situation and it be a lose lose