How to collect on Stopped Payment Cheque
October 3, 2016 2:04 PM Subscribe
I work for a doctor's office and we received a cheque for a large amount of money. After agreed-upon services were fulfilled, the person stopped payment on it. Medical insurance is not involved/not used. The person resides several states away. How can I legally collect payment on this?
Response by poster: Thanks @brainmouse. I should have mentioned that we tried that to no success. Thank you though.
posted by Kombucha3452 at 2:59 PM on October 3, 2016
posted by Kombucha3452 at 2:59 PM on October 3, 2016
The simple answer is, you can't collect on that check: once a check is stopped, it's effectively as if they'd never written you one in the first place. I'm afraid that yes, you're going to have to go the legal route: surely the doctor has a procedure already in place for nonpayment of services.
posted by easily confused at 3:06 PM on October 3, 2016 [3 favorites]
posted by easily confused at 3:06 PM on October 3, 2016 [3 favorites]
Stop payments typically last only six months and then must be renewed. If mot renewed, then the bank may honor the check. https://www.helpwithmybank.gov/get-answers/bank-accounts/stop-payment-orders/faq-bank-accounts-stop-payment-orders-03.html
If you present agaim in six months it may be paid. Of course the person may have closed the account or have insufficient funds.
posted by limagringo at 3:13 PM on October 3, 2016 [2 favorites]
If you present agaim in six months it may be paid. Of course the person may have closed the account or have insufficient funds.
posted by limagringo at 3:13 PM on October 3, 2016 [2 favorites]
The answer will probably depend on the states involved and whether the amount exceeds the limit for small claims court.
posted by bq at 3:20 PM on October 3, 2016
posted by bq at 3:20 PM on October 3, 2016
I wonder if this could be considered check fraud?
Here's some advice on a slightly similar situation, where the service provider got a few different opinions - file a "theft of services" report with the police, contact the DA, file in small claims court.
You could certainly call the police and the DA to ask if that is something they would pursue. You could also report it to their bank.
In some states this could potentially be considered a crime.
posted by bunderful at 4:23 PM on October 3, 2016 [3 favorites]
Here's some advice on a slightly similar situation, where the service provider got a few different opinions - file a "theft of services" report with the police, contact the DA, file in small claims court.
You could certainly call the police and the DA to ask if that is something they would pursue. You could also report it to their bank.
In some states this could potentially be considered a crime.
posted by bunderful at 4:23 PM on October 3, 2016 [3 favorites]
The easiest thing to do is probably to turn it over to whatever collections agency you already use.
posted by The Elusive Architeuthis at 4:33 PM on October 3, 2016 [3 favorites]
posted by The Elusive Architeuthis at 4:33 PM on October 3, 2016 [3 favorites]
From limagringo above: Stop payments typically last only six months and then must be renewed.
I'm wondering if this is common knowledge among most adults because it's news to me and I've been around for a long time. (I learn SO much from you people.)
Given this info (and assuming the wait won't jeopardize other legal options), I would take that check to the issuing bank* the day after the hold expires because there is no automatic expiration date for checks. Granted, banks aren't required to honor "stale" checks, but I'm guessing that a check written to a doctor's office would be more likely to be accepted than a check to an individual/private party.
If the account has been closed or has insufficient funds (and no overdraft protection), you can then pursue your other options.
*Depositing at another bank will delay the process a bit, giving your client more time to renew the stop payment, if that's their intention.
posted by she's not there at 5:29 PM on October 3, 2016 [2 favorites]
I'm wondering if this is common knowledge among most adults because it's news to me and I've been around for a long time. (I learn SO much from you people.)
Given this info (and assuming the wait won't jeopardize other legal options), I would take that check to the issuing bank* the day after the hold expires because there is no automatic expiration date for checks. Granted, banks aren't required to honor "stale" checks, but I'm guessing that a check written to a doctor's office would be more likely to be accepted than a check to an individual/private party.
If the account has been closed or has insufficient funds (and no overdraft protection), you can then pursue your other options.
*Depositing at another bank will delay the process a bit, giving your client more time to renew the stop payment, if that's their intention.
posted by she's not there at 5:29 PM on October 3, 2016 [2 favorites]
Sticking my head back in to say - whatever else you do, please do contact the police and the bank. If this is part of a larger racket you could be helping the authorities figure it out sooner rather than later, even if you do not directly benefit.
Unless you have reason to believe that it's not fraud.
posted by bunderful at 6:34 PM on October 3, 2016
Unless you have reason to believe that it's not fraud.
posted by bunderful at 6:34 PM on October 3, 2016
This thread is closed to new comments.
posted by brainmouse at 2:40 PM on October 3, 2016 [2 favorites]