Not paying the National Check Trust company on time?

Question

We bought a vehicle in March and wrote a check for $5000 for the down payment. The dealership said they would hold the check for 30 days so we could request the money from our retirement fund. We were only able to pull out about $1000 so when it came time to deposit that check it was going to bounce. I called the company that guaranteed the check, National Check Trust, and they told me to place a stop payment on the check. I did. Then about 2 weeks later they started calling wanting the $5000. I still don't have that much and am wondering what, if any, legal issues they can bring against me. I want to pay, I just can't pay $5000 all at once. Please answer only if you know an answer for sure. No, "Your going to jail... I think," answers please. I really appreciate it.

Answer 1

They can bring up a breech in contract and sue for damages.

Answer 2

You can't trust companies to do what was verbally agreed to. One person at a company might have said they would hold the check longer, someone else might try to deposit it, then you in trouble for a bounced check.

You need to renegotiate the car loan, perhaps with another bank, before they repossess your car for defaulting on the written agreement. Get that $ 5,000.00 check back from the downpayment, and make a new contract, where over time you will be paying much more $ because of a smaller down payment.

Look into what else you can use for collateral ... do you own a home that you can 2nd mortgage?

Answer 3

Not jail; but they have the right to pursue you for the funds, file judgement, and collect against your assets. Stopping payment on a check after you took posession of the vehicle may also be check fraud in your state. Get them on the phone and get a deal worked out; and maybe call the DA and ask them what your criminal liability is in your county

Answer 4

If you stopped payment on the check, they can't have cashed it AT ALL. Either they never stopped payment, or you aren't telling the whole story.