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#100973 - 07/25/03 05:30 PM Cashing a check for a charged off checking account
N Langley Offline
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Joined: Dec 2002
Posts: 11
Mid West
We wanted to know if somebody brings a check to cash and we have charged their checking account off and sent them to ChexSytems can we collect the money from this check?

What if the person signs the check over to another person, can we try to collect the funds?

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#100974 - 07/25/03 06:04 PM Re: Cashing a check for a charged off checking account
Brandy Osborne Offline
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Joined: Jun 2003
Posts: 660
KY
While i'm not a pro in this subject, i'll give it a shot. my first thoughts is simply no. this is not a right of offset situation, especally if the check is from another bank and even more so if the check is made payable or endorsed to another person. that person is holder in due course. could be wrong, but thats how we would treat it at our bank
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#100975 - 07/25/03 06:38 PM Re: Cashing a check for a charged off checking account
Andy_Z Online
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I too have my doubts as you'd have to make them deposit the funds to setoff, I believe.

You could refuse to cash the check.
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#100976 - 07/25/03 07:12 PM Re: Cashing a check for a charged off checking account
Don_Narup Offline

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Las Vegas Nevada
Its absolutely amazing what happens sometimes when you ask for your money. If they don't want to pay, you can refuse to do business with them.

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#100977 - 07/25/03 07:18 PM Re: Cashing a check for a charged off checking account
N Langley Offline
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Joined: Dec 2002
Posts: 11
Mid West
Could we refuse to cash the check if it is drawn off of us?

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#100978 - 07/25/03 07:41 PM Re: Cashing a check for a charged off checking account
Don_Narup Offline

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Las Vegas Nevada
If it were me I would nicely indicate to the customer that "Did you realize that you owe us XXX $ from what ever caused it. Do you plan to pay from this check? You play it by ear from there.

What is your policy on cashing checks from non customers? There has been some discussion about this on several threads lately. My position is if its drawn on you, you cannot refuse it, but others see no problem with that. Plus they charge a fee to cash it. That may be a means to get the customer to pay also.

Not knowing what your state law is on something like this I would run it by bank legal to get an opinion on refusing

My personal experience was refusing to cash unless they paid what was owed. I told them that sooner or later we would collect so why not just stop having this hang over their head causing problems. It never went beyond them paying or leaving. I didn't actually refuse but I didn't imply I would cash it either. The decision to leave without paying was theres
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#100979 - 07/25/03 08:08 PM Re: Cashing a check for a charged off checking account
Brandy Osborne Offline
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Joined: Jun 2003
Posts: 660
KY
i agree with don, a polite and yet probing question lead them to "remember" (as if they forgot) that they owe you money. I believe that if the on us check they had is on an account that the perp has then you may have a point for offset, but if the check is drawn on another person's account and you refuse to cash it, you might have a problem with dishonor issues
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#100980 - 07/25/03 09:12 PM Re: Cashing a check for a charged off checking account
thomasj Offline
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Joined: Mar 2001
Posts: 5,063
Pennsylvania
I remember a time years ago when I was a teller when we weren't so concered about being politically correct and we weren't affraid every other customer was going to file a lawsuit. We had a customer who owed us money for a bad check or bad account. He came in with his paycheck and we called the officer who was in charge of collecting such things. He instructed us to deduct the amount he owed us and to give him the rest in cash and tell him not to come back. The guy flipped his lid, but we collected our money and never saw him again. Ah, the good old days! Can you imagine what would happen if we did that today?
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#100981 - 07/25/03 09:24 PM Re: Cashing a check for a charged off checking account
Don_Narup Offline

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Las Vegas Nevada
Thats how I remember it also. But there were occasions. A customer was making a scene about being charged .50 cents for a Cashiers Check (long time ago HuH). The manager reached in his pocket and laid two quarters on the counter.

The manager received a call later in the day from the regional office, stating that the customer had complained he had been embarrassed by the managers action by making him look cheap in front of other customers.

The manager was told by the regional VP to go to the persons home that night and apologize.

Those were the good old days I can do without
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#100982 - 07/25/03 09:48 PM Re: Cashing a check for a charged off checking account
thomasj Offline
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Posts: 5,063
Pennsylvania
I remember a similar incident where the VP paid a cashiers check fee for a customer. I think when i started money orders were $.50 and cashiers checks were $.75.
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#100983 - 07/28/03 03:29 PM Re: Cashing a check for a charged off checking account
Elwood P. Dowd Offline
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