Hot Checks

[SueBaby]

Had hot check today and found he gave me a bogus address and a disconnect phone number. He direct deposit refund in bank. So how do I deal with this? Just eat it and forget it?

[taxmandan]

Furgetaboutit

Had hot check today and found he gave me a bogus address and a disconnect phone number. He direct deposit refund in bank. So how do I deal with this? Just eat it and forget it?

Move on and make some money from your good clients. If the check was on a closed account, not just an overdraft, you could talk to the police about theft, some state laws consider that a crime. But don't waste time suing him in small claims or turning it over to a collection agency, not worth the bother. IMO

[Gretel]

That depends

on the amount of the check and on the likely hood to recover funds. Last year I started to work with a collection agency. Takes about 10 min. to fill out their online form. They keep 30%. I am sure glad I did start working with them.

[SueBaby]

on the amount of the check and on the likely hood to recover funds. Last year I started to work with a collection agency. Takes about 10 min. to fill out their online form. They keep 30%. I am sure glad I did start working with them.

It is for $350 and I spent 2 hours on him and mad about it. The nerve of some people. He probably went straight to the bank and canceled the check.

[JohnH]

Lesson Learned

Years ago my father-in-law (Sam) sold real estate in a small town, but he never had people sign contracts. One day Sam & I were discussing a person who had cheated him out of $1,000. I was ranting on and on and trying to get him to take the guy to court. Sam said "I'm glad he cheated me out of $1,000. Now I know he will never get a chance to cheat me out of $10,000." His idea was that the $1,000 was a nuisance, but the $10,000 would really hurt, and knowing who to avoid when the stakes were high was worth more than the little loss. I learned a lot about life from Sam.

[SueBaby]

Years ago my father-in-law (Sam) sold real estate in a small town, but he never had people sign contracts. One day Sam & I were discussing a person who had cheated him out of $1,000. I was ranting on and on and trying to get him to take the guy to court. Sam said "I'm glad he cheated me out of $1,000. Now I know he will never get a chance to cheat me out of $10,000." His idea was that the $1,000 was a nuisance, but the $10,000 would really hurt, and knowing who to avoid when the stakes were high was worth more than the little loss. I learned a lot about life from Sam.

Sam is a smart guy.
The 2 hours I spent on him and had a lot of stuff I got him back over $5,000 burns me up. But got to get over it and go on. I really learned on him. I hope he sleeps terrible.

[ChEAr$]

All may not be lost

Sam is a smart guy.
The 2 hours I spent on him and had a lot of stuff I got him back over $5,000 burns me up. But got to get over it and go on. I really learned on him. I hope he sleeps terrible.

Call your local district attorney and inquire about Loosana's bad check law. If it's anything like
what we have down here in LA, the fellow could go to jail if he doesn't come up with the money.

As for fact he gave false address, still the DA might know about him already, or even have
way to find him.
I'd do it for 350$; or even 80$.

[erchess]

I look at it from two different angles

How little time can I put in and how much can I make him pay? (I am not interested in how much ends up in my pocket. I would settle for getting nothing for myself if I could force him to pay five times the value of the check to someone else.) So I turn it over to a collection agency if I have a bad address and telephone number. If I can find them I give them a couple weeks to make the check good and pay me the $12 that my CU charges me. After that even these people I would have liked to keep as clients go to the collection agency.

[snowbird]

Confused

Had hot check today and found he gave me a bogus address and a disconnect phone number. He direct deposit refund in bank. So how do I deal with this? Just eat it and forget it?

I am confused, he gave you a hot check and direct deposited the refund. I assume the check routing and account number for the direct deposit was the same as on the hot check? If so, you can call the bank to see what can be done when the deposit is made ... or estimate when the deposit will be done by the IRS (8-15days) and re-try the check at the bank.

[Valarie]

We have a sign-in sheet at the reception desk that has a header paragraph that states:

"By signing in below, I agree that if my check for payment of services is declined by my bank for any reason, I authorize an EFT transfer, including a $25 NSF fee, from that account or any account deemed owned by me."

Since we are an authorized EFT originator (due to payroll processing and direct deposits that we process), it is an easy process for us. We usually try to initiate a payment on a Friday (payday) or right around the 1st of the month (rent or mortgage money in the account).

We can use the DD account they provide, if it's different from the checking account they gave us a check on...

They never complain - they signed the authorization... and we get paid...

Valarie

[DTS]

SueBaby

Some years ago, I had a customer nail me for a check for $250. After numerous letters, calls, etc., I let it be.

A couple years later, he came in needing something for his daughter and I told him "no" because of the check. The excuses like "I did not pay you?" or "I thought my girlfriend took care of that for you", etc. Anyway, he needed this item fast and I had cash in 2 hours.

Hang in there, as you may get it when and if he needs something later on!

Dennis

[S T]

Curious

Valerie,

Can you share on how to become and EFT originator as you describe earlier.

Thanks

Sandy

[myerstaxes]

That is what I say!

I am confused, he gave you a hot check and direct deposited the refund. I assume the check routing and account number for the direct deposit was the same as on the hot check? If so, you can call the bank to see what can be done when the deposit is made ... or estimate when the deposit will be done by the IRS (8-15days) and re-try the check at the bank.

Based on the refund schedule you know when the funds will be there...I would present the check at "HIS" bank on that day (if the bank is near by) if it is the same bank as the direct deposit...That would be one efile that I made sure go in on time...smile...

[Valarie]

Valerie,

Can you share on how to become and EFT originator as you describe earlier.

Thanks

Sandy

We use The ACH Processing Company in Savannah, Georgia. We have been an originator for about 12 years now, and back then it was real easy, not sure of the qualifications now. There is a minimum monthly charge and a per batch fee, and per transaction fee... not too bad if I remember correctly...

It would be too much if you were only processing a few bad checks through there, depending on amounts, but we have a good volume of transactions (400 or so a month) and pay around $175 a month.

Email me if you'd like more information or contact info...

Valarie

[Valarie]

Based on the refund schedule you know when the funds will be there...I would present the check at "HIS" bank on that day (if the bank is near by) if it is the same bank as the direct deposit...That would be one efile that I made sure go in on time...smile...

The problem I usually have in doing that, is the check is made payable to "My Company Name" and "his bank" can't cash that check as I don't have a business account there...

Sometimes banks will convert the check to a bank check - good as cash - that you can take to your bank and deposit, but many banks won't even do that...

If the client check is payable to an individual, then you're method will work...

Valarie