Stop Payment on a Legitimate Check?

Question

I entered into an agreement with a friend/boyfriend that he would lend me $3700 for me to pay off a few credit card debts etc to improve my credit, and I would pay him $100 a month until it was paid off (including interest). I received the check on a Thursday, deposited it into my account and the check cleared my bank on Friday. All of the funds were there for me to use. I sent off my checks to my credit card companies, and as far as I was concerned everything was fine.

That Sunday, he called me and told me he had canceled the check...my heart sunk. He had made me in essence write $3700 in bad checks! My question is whether or not he can stop payment on that check even though I have used part of the money? If the bank didn't have the money, why would they have let me use the funds? My mom is going to be depositing the $3700 in my bank account today to keep me from having all of these bad checks which would probably lead to a criminal matter...but wow can he do this?

Answer 1

Did youmake a written agreement? if so he is in breach of contract. if not take this as a lesson not to enter verbal contracts, at any rate I hope you consider him an EX friend/bf

Answer 2

If the check ''cleared'' the next day then it sounds like your bank got the funds from his bank, that means he didn't cancel it in time. And was your agreement in writing? If so then he is breaching the''contract'' and if he couldn't place a stop payment on the $3700 check, then you can still inforce the contract and payback at the $100 a month plus interest for the life of the contract.

Answer 3

Perhaps he can. He would have to lie to his bank about the reason for returning the check. Generally speaking, once a check is paid, it's too late to stop payment on it, but he could induce his bank to return the check if he claimed you kited a $37 check into $3700, or if he bought something from you and it turned out to be worthless.

If he does this, you could sue for breach of loan agreement, and possibly a few other things, too. Just as important, if he did in fact get the check unpaid by attributing unlawful activity to you, be vary careful, as a transaction intended to repair your credit could end up tanking your rating.

Might be a good case for The People's Court if you file it.

Answer 4

If it hasn't cleared his bank yet, he probably can, but it's a fairly rotten thing to do. Unless your account is in the same bank as his account, it would take an extra day or more to clear his bank. Even if you use the same bank, they wouldn't verify the check when you deposited it, but would that night when all items are put through their computers.