If you have written a check @ a check cashing place & cannot pay it, what will happen?

Question

I know someone who has a check out at one of those check cashing places & he just recently lost his job. He had some checks bounce, so they closed his checking account out & he's in the negative. He's in debt now. He's worried about what this check cashing place could do to him, if he can't pay the check off. I know that if he doesn't go down there & pay, that they will try to cash the check. But like I said, his checking account is now closed. Does anyone know what they can do to him? Can it get really serious, like could he be taken to court or anything like that, over it? I think he may have written a check to another check cashing place as well. He said when he signed the form, it said he was agreeing that he didn't have checks out over $500, but w/that other one, it's over $600. What if he can't pay either one? Does anyone know from experience or that maybe works for a check cashing place? Dont know if it will help, but he's from TN. I'm trying to get advice, to help him. Thanks

Answer 1

Writing worthless checks is a criminal act and you can be arrested for it. I have a habit of reading the arrest section of the newspaper and they arrest people for writing worthless checks.

I do not know if this qualifies for that, but it is something to take a serious look at.

The one thing that I can guarantee you is that this person could end up in a court, either civil or criminal. What this person needs to do is communicate with the check cashing business. If this person ends up in front of a judge, he needs to be able to explain what happened and how he has tried everything in his power to repay this debt. It is easier for the check cashing business to work with the customer than to go to court. I would bet that if this person it making an honest attempt to repay this debt, they can avoid the courts.

Answer 2

Writing a check and having a closed account or insufficient funds is a criminal offense. This can result in substantial fines and a criminal record. If it happens more than once there can be even more serious penalties. Because of the seriousness of this he needs to try and see if family or friends can help him out. Some check cashing places will extend the time for a payment. But he is looking at about 20% a month in fees, interest and whatever else they call their charges.

He can get food from a food ministry (see www.secondharvest.com which can help him find food ministries near him) he may be eligible for food stamps and unemployment, possibly he can get help with rent and utilities through a chuirch or by going through agencies listed under Social Service in the yellow pages. He can go to a temporary employment or day labor place as ways of surviving day to day, week to week till he gets a new job but if there is any way friemds and family can help him - not expecting return but being happy if they get it - that would be a very good thing.

Answer 3

I think what they will probably do is keep trying to contact him to get the funds from the bounced checks. If that does not work, they will send it to collections. I had a friend that the same thing happened to several years ago. She had taken out two cash advances from two local check cashing places and then not only could she not pay them, she ended up leaving her job and moving out of state! Of course they called me because I was a reference and they asked me if I knew where she was ect. Eventually, she said that they showed up on her credit record as collection items. Other than that, I think with such small amounts that they are dealing with, they would not bother to take you to court which would be too costly for them. But I guess if a business wanted to press charges over check writing fraud they could take you to court. But, I doubt that would happen since they were written in good faith at the time and before his account was closed.


EDIT: Just found this from the link that someone posted below about check cashing fraud and and how they consider cash advances where you post-date a check just an IOU and do not criminally prosecute those cases:

"CHECK ADVANCE" TRANSACTIONS

For the above reasons, checks written in so-called "cash advance" transactions (where money is loaned in exchange for a post-dated check, which is returned on payment) are not covered by the criminal bad check law. There is essentially an understanding between the parties that the check is not good on the date the money is received, and that it is not expected to be good until the future time when it is post-dated. The check is essentially an IOU, or collateral for the loan.

The business can indeed sue civilly to collect the loan. But threats to file criminal charges are not appropriate.



Sounds like your friend is really struggling financially. I hope he gets his life in order soon.

Answer 4

I'm not sure about if this is okay legally, but I would not pay for it out of your own pocket, that just doesn't seem right. I would go to someone higher up than your manager if possible because they probably don't have the authority to tell you to do that. If it's a franchise place like a fast food restaurant, is there an owner you could talk to? Tell them the situation and be honest with them. It's probably not that someone took the money but that someone handed out the wrong amount(s) somewhere and that happens anywhere you work with a register. I'm a teller at a credit union and if I was to put my own money in my drawer if I was short, I would get fired.

Answer 5

Cheque is an alternative payment method. When someone (payer) issues a cheque to a party(payee), the concern party(payee) could go to the bank where the cheque account(payer's) is maintained or any other bank where his own account(payee's) is maintained for clearance of the cheque.
When the said cheque is dishonored for 3 times or whichever number of incidents fixed by bank, then the said account would be closed for non-compliance of banking rules.
In your Friend's case this is the scenario. So what would happen after this is a probability of the payee takes an action to recover the due from your friend, and actions include

a) A legal means in the event fail to contact your friend
b) Your friend's name to be blacklisted by both banks and creditor.
c) This could be regarded as "Breach of Trust" on the part of your friend.

So I would suggest your friend immediately contact the payee to arrange default payment in whatever manner that is agreeable to both parties. Usually an amicable solution is possible as this is not something unusual. THINGS WILL GO UGLY ONLY WHEN YOUR FRIEND IGNORES THE ISSUE. ADVISE HIM ACCORDINGLY.

Answer 6

1/2 of the cases in small claims are defaults at the check cashing places .
Their default % rates are about 500% plus and endless list of fees .
The $500 will end up costing him about $1200 .
Only uber fools use those places , guess he won't be any more !
Once they have the court judgment , they can begin garnishment proceedings for any assets or wages once he is employed again .

Answer 7

Here is a very easy to read link to the Tn. Attorney General concerning bogus checks:
http://www.attorneygeneral.org/gencheck.html

edited to add another link showing the bad check criminal statute
http://www.attorneygeneral.org/tenbad.html

Answer 8

This will get very serious. He could find himself in serious trouble.

He needs to go talk to them immediately and make arrangements to pay the money.

Good luck

Answer 9

They will try to withdraw it from your account,, causing and overdraft,, they will wait until your next payday and do it again,,, they can do this 3 times.... then they will turn you over to a collection agency that will call your house all day and night until you pay.

Answer 10

They will send the check to the courts and he will have to pay it, and the interest will be really high. He can and will go to jail if he don't pay it.