I recieved a payroll advance from a check cashing establishment about 3 weeks ago and they have yet to cash my check. I want to put a stop payment on it, but as bad luck would have it it'll probably try to clear my account the day I decide to do it.
If I do stop payment on it and the check never clears my bank account do I still have to pay them that money or will my debt magically disappear? LOL
2007-07-19 12:47:06 · 6 answers · asked by K.C. 5 in Business & Finance ➔ Credit
First you need to keep in mind that you do legally owe the money, regardless of when they cash your check. With that being said, if you choose to stop payment on the check (which would be illegal and you will end up in court over the matter), you would pay a fee to do so.
The debt will not magically disappear and you will still owe the money. I gaurantee you that the company will take you to court and could still pull the funds from your account because they do have your account number. They would be well within their rights to do so because you signed a contract for the advance.
Your best bet is to call the check cashing establishment and inquire why the check has not been cashed. You can talk to them about any other payment arrangements/options at that time if you do not have the funds available. Most check cashing companies that I know of do not cash the check anyway, they just use it as proof of a checking account and have your account number on file should something like what you are asking happen. Most require you to pay the advance back in cash.
2007-07-19 12:55:45 · answer #1 · answered by Keri 2 · 1⤊ 0⤋
When you signed the cash advance agreement there was a stipulation that if you put a stop payment on the check they can charge you a huge amount of fees and interest and take you to court for breech of contract. I wouldn't do that...usually they give you a little berth when it comes to cashing your check...and they call the bank regularly to see if the funds are there...so if you don't have the funds in the account they won't deposit it either.
2007-07-19 13:40:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I have no clue how moutain got a thumbs down.
In Utah you can only stop payment on a check if the other party knows and agrees or if it was a mistake. Otherwise it is Fraud. Its a felony depending on amount.
It wont go away, I doubt the payroll advance people will call a collection company to collect the bill. I guarantee you they will just call the police if you do it.
2007-07-19 13:06:06 · answer #3 · answered by financing_loans 6 · 1⤊ 0⤋
That is actually a criminal offense in most states -- uttering a worthless instrument is what it's called. You'll certainly still owe the money and CAN be arrested and prosecuted!
2007-07-19 13:07:46 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes you'll have to pay it, it will show up on your credit report and go to a collection agency eventually.
2007-07-19 12:50:08 · answer #5 · answered by Kellie 5 · 0⤊ 0⤋
So you want to face a fraud charge and possibly go to jail for this ? If you do what you are planning, it's called theft.
2007-07-19 12:51:25 · answer #6 · answered by Mountain Top 4 · 3⤊ 1⤋