Does anyone know how to assert a claim against a drawer for a holder in due course item? Forms- procedures, etc. I have searched for information with no luck.

Situation: Check deposited into an account, item returned stop pay and the account is in the negative. The customer refuses to "give back" the money. The bank is now a holder in due course for this item. The item is approximately $1500.00.

LCoyle

I have had some success with filing claims at the local district court. In most cases, the depositor gets notice of the suit and makes us whole before we even go before the judge.

Check your state's small claims laws. A claim of $1,500.00 does not justify a lawsuit using an attorney. If the small claims court jurisdiction limit is greater than $1,500.00 you should file a small claims lawsuit against the drawer (assuming the drawer will not respond favorably to a demand letter).