Question about bounced checks, preferably from someone in banking laws?

Question

I had an employer that wrote me a check and said not to cash it till Monday, because the money was not there.  This was Saturday and I told her I need my money because she was already a week late paying me.  She told me to take it to a check cashing place and she would make sure the money would be there on Monday in her account.  She didn't, and has not for a month, even though they have all of her phone numbers, even at home.  

Here is the thing.   The people at the check cashing place have been calling me everyday and sending me letters saying I am responsible for this check plus fees.  They say they will put it on my credit and take me to court.  

I did not write the check, sign it, nor have anything to do with the account it was written on.   

Can they really do this, if so, give me laws!?

Microwaved Tofu! · Accepted Answer

Its not your fault if you cash a check that was given to YOU. If it bounces that is 100% the check-writers fault! She shouldn't be giving or writing checks that she does not have the money for!! If anything you should be taking your boss to court for not paying you for your hard work!

But if you went to a pay day advance place (like Cash-Time, or a Pawn Shop)  that is a different story. If you owe them, you owe them fairly.

StephenWeinstein · Answer

The short version is yes.  You cashed the check, and also you signed the back of the check when you cashed it.  If it was no good, then you must return the money, with interest or fees or whatever; if you do not pay what you must pay, then it will go on your credit and may go to civil court.

However, there are much more serious issues that you are missing:

1. Immediately file a complaint with the agency in your state that handles unpaid wage disputes (the TWC in Texas; EDD in CA; part of the state Department of Labor in most other states).  Paying with a bad check does not count as paying.  You employer may be required to pay you cash for the wages owed and pay a fine to the government.

2. Also, report your employer to the police for passing a bad check.  This may result in your employer being arrested and you losing your job, but that is ok if you are not getting paid anyway.

3. In theory, you could take the employer to court yourself, but that would take time and money.  Having the government do the work for you (see item 1 above) is easier.

MadMan · Answer

As far as the law and the check cashing place is concerned, YOU passed the bad check and YOU have to cover it.  When a bad check is rejected, it is always the responsibility of the person who cashed/deposited it.  Now, you should be able to get the money plus the costs back from your employer but she is obviously a dead beat.  if she has not paid you for work done, go to your state's labor board(?) and they will help you.  you will also probably have to sue her but as an employee, you are senior to other creditors when she goes bust.

Genuine Guidance · Answer

Yes, they can do this. It would be the same if you went to your bank and deposited the check and it bounced. You would be responsible for paying the bank back if you spent the money, and the fees associated. 

You did sign the check..you signed the back to negotiate it! LOL  

You need to pay back the check cashing place and then sue your boss in small claims.

I also would report this person to the labor board if she is not paying you for work done. I hope you are not still working for this person and their company.

Ai · Answer

Were you able to cash the check?  They should run after the issuer.  I'm not familiar with your country's laws but normally they can file a case of estafa against your employer.

Anonymous · Answer

Lots of good answers her. Get pre-paid legal in your area, to sue her. Only $25/month.

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Question about bounced checks, preferably from someone in banking laws?

6 Answers