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Bad check in collection


codename_fortyseven
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One of my buds (old roomate) has a supposed bad check in collections. I am really confused, though as he doesn't remember writing it, and neither do I. They say they have the check and will forward a copy of it, but talking to them briefly, they likely have NO idea about FDCA and all.

I almost feel bad for them...almost. At any rate, they are going to get the full treatment. I was just wondering what they need to provide to Validate the bad check. Is it more than just the check? I would think it would be that they have the authority to collect, detailed accounting of the account in question, etc...

Thoughts?

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Greetings Niner849 -You are right...

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An original check is a "prima facia" document and is a legal debt instrument (UCC Art. 3 Sec 9,) and a copy of returned (or not paid,) check proves a debt.

Possession of the original check is all that is needed to collect on it.

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BTW: Bouncing a check is a FEDERAL CRIME and in some states a Felony on top of that...

This is not just a civil matter. I would be very careful or you could find yourself in a very bad situation. (Depending on what state you live in and or the dollar amount of the check.)

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Once they send you a copy the check you will be able to see if it is really yours. :!:

Best wishes,

Radio_Guy

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Hi score booster,

I don't wish to contradict you however-

The check should be stamped "Returned Unpaid" there is usually additional verbiage on the stamp and checkboxes for the reason.

(Sometimes the stamp will also say "for insufficient funds unless otherwise noted.")

A bad check is "Bad" because it has not been paid. That doesn't always mean insufficient funds.

"The Maker" could have forgotten to sign it, the check could be stale dated- (expired,) the drawee's account could be closed, the signature may not match what the bank has on file, the endorsement could be questioned or the written dollar amount does not match the numerical amount.

Depending on the reason the check has been returned could affect weather or not " codename_fortyseven " would be required to redeem it, (pay it off.)

Best Wishes...

:wink:

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If it is from JBC Legal or Security Check... watch out.. they are BOTTOM FEEDING SCUM.

Now.. you need to check state laws to find out if the check was purchased or they are just collecting.

JDBs will purchase bad checks and try and collect up to 5 times the amount of the check. I am dealing with this right now.

Your state laws could provide you with even more protection

i.e, in Indiana when a person purchases an already "defaulted or bad check" they are no longer a "holder in due course" and have NO LEGAL REMEDIES to collect the check.

Basically they have worthless paper.

Check all your state laws, SOL and etc for this!!

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Radio Guy- I understand, I was just using the "insufficient funds" stamp as a quick, general reply. There are in fact other possible reasons, but I think insufficient funds is most common.

gottcha score booster...

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To echo what Sky said, make sure you check all state laws about checks and dishonors. Under Washington State law if they do not send a Notice of Dishonor with specific language within 30 days od dishonor the check is unenforcable, period.

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