We have had our first returned check froma a customer. We have contacted her several times. We keep getting the run around. (I'll be in Saturday I get paid on Friday....) It's been 3 months now and honestly I've had enough.

My question is do banks still let you put a check in for collection? You know, I give it back to my bank and they send it back to her bank. They hold the check until she makes a deposit into her account. As soon as money hits her account the money she owes us will be taken out immediately.

If they do, is 3 months to late for the bank to do anything with it?

Thanks,
Laura

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It may vary bank to bank, you'd probably have to contact them to see if they are willing to do that.

Where I work, we belong to a check collecting service and any returned checks automatically get sent to that collection agency. They do their processing and when they are able to collect the check from the person's account, it automatically gets deposited in our bank account.

The collection agency then gets the service charge/fees for their services (with our company, it's $30 per check).

Have you tried contacting the party using a certified letter? Sometimes a sternly written letter with a deadline "pay by" date gets their attention, especially if it's something they need to sign for at the post office.

It probably varies by state, but here if a check is written on a closed bank acount, the county attorney will try to collect on your behalf.

Another option is using small claims court. Quite often just mentioning that you will file a claim through small claims court, will get the person to pay the debt to you. If you file and win a judgement, they will also be charged any court costs on top of the original check amount.

It has been a long time since I have dealt with this but here's how we used to do it in the olden days.
First call the bank that the check is drawn on. Is the account still open? If it is, does it have the funds to cover the check? If it is still open, call each day until there are funds in the account and then get yourself to the bank and collect. If it is written to a company you may have to show your business account info to get them to process.
If the account is closed call your city proscecutors office and see what action they will take. In AZ it is a pretty serious thing to write bad checks. I can't speak for Kentucky.

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couple of things:
If you do send her a certified letter, also send the same letter to her regular mail. The person may very well refuse delivery on the certified letter, but most likely will not on the regular mail letter. That way YOU know she has received the letter and you have the correct street address.

Depending on what amount the check is written for: it could be a misdemeanor or a felony. (some states $500 is a felony. Of course, that's $500 total. So, even your bad check is $100, but she wrote 3 more and they all equal $500+ she could be committing a felony.)

I say contact your local law enforcement and file theft charges (most states have hot check laws). You have been way too generous in giving her 3 months to make good on the check. File charges today!

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I agree call the bank, ask if the funds are available, then go cash it if they say yes -

and OP where I live people can be fined 3x the check amount plus more fees, if taken to court etc..check out your state law in case you need to file a court claim or a law enforcement complaint...I don't know if it's a large amount or worth it to do that, but anyway here is a list -

should be a crime anywhere to write a bad check

State Collection Law Summary - The Commercial Bar

Thanks for all the info! Monday morning I will be busy getting this done with once and for all.

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