Legal action for accepting bad checks???

Question

My husband banks with NC State Employees Credit Union. Several weeks ago, he made the mistake of cashing some checks for a "friend" and giving the "friend" the cash. (The friend wrote the checks out to him, he cashed them at his bank, and he gave his friend the money.)

Of course, they bounced. I'm not really clear what made him think they wouldn't, since obviously the "friend" could not obtain the money himself for a reason. Anyway, now the bank is coming after my husband and threatening legal action if he doesn't come up with the money (approx. $6,000).

The "friend" keeps saying he will come up with the money, but so far, hasn't done so.

My question is this: What kind of legal action can they take against my husband?

Thanks!!!

Answer 1

The bank can and will go after your husband for the entire amount plus penalties.

You need an attorney. The attorney will probably advise your husband to meet with the bank, tell them what happened and work out a payment plan.

As for the friend, there is nothing you can do that won't cost you as much in legal fees as you are likely to recover.

Answer 2

The bank can take out a warrant on your husband for fraud if the checks are not paid. Your hubby needs to contact the bank and see about paying off the checks. Once they are paid he will get the checks back and can go to the local magistrate and swear out a warrant against his "friend". As far as a payment plan I doubt that will work. I'm not sure where you are from but if someone takes a partial payment on a returned check the casher of the check is no longer responsible for the check in the state I live in.

Answer 3

He needs to go to the police, now, with the information about his friend and the checks. A police report should be filed, and a copy brought to the check cashing place to show that action is being taken.

however, your husband is the one who cashed the checks, and if there is no proof he handed the money over to someone else, it is his responsibility.

If he does not pay, it will go on credit history, and they can pursue collection by all legal means. I believe they could even file theft charge with the police as well, so your husband should definitely be the one to do that first.

Answer 4

If the check is returned for "insufficient funds", and you can't locate the individual who wrote the check, file a crime report at your local police station. If a police investigator can locate the individual who passed the bad check, that individual will be required to pay you and/or spend some time behind bars. If the check was returned "account closed", you may have a criminal case depending upon when the account was closed. If the account was closed before the date the check was written, you definitely have a criminal case. If the account was closed after the check was written, the court may determine that you didn't present the check for payment in a timely manner. In that case, you have a civil matter, not a criminal complaint.

Answer 5

They COULD (but won't) charge your husband with bank fraud, arguing that he must have known something was wrong (Why didn't his "friend" just draw on his own account? Because he had no money!)

They will chase your husband until he gives them $6,000 plus charges plus interest. But they will chase him slowly, because with each passing day he will owe them more money.

If I were your husband, I would accept that this "friend" isn't, and I would visit him to 'recover' my money!

And if I were you, I wouldn't let him out with the checkbook any more!

Answer 6

Get into the court room as fast as you can. Your husband (and you) are indebted to the bank (you owe them) the friend owes you. After a judgment you have to wait so long for "friend" to pay you or you call the law and they impound "friends" belongings and they have a garage sale, give you what they got and you hope "friend" owns enough to pay you.

Answer 7

Your husband is too gullible, get an attorney.