Law Advice?

Question

On 9/8/2007 I purchased a motorcycle from a person in Des Moines IA, I purchased this via a loan thru Navy Fed. Credit Union. They gave me a check which I was to endorse on the back, of which I didn't realise, The seller took the check and cashed it later at US Bank, and noone at that bank noticed the discrepency. Friday (9/14/2007) I called Navy Fed. and they stated that the payment was made to his account but it probably hasn't cleared his bank yet. Us bank also told the seller that the funds cleared. Apparently later that day Navy Fed. either took the funds back or never truely credited the money. Today (9/18/2007) the seller calls up telling me that the check didn't clear and that he bounce a bunch of checks because of it (around 250 in overdraft fees), and he want's me to pay for these overdraft fees. I also contacted Navy Fed. today and they stated that they never paid the check.

So the question is who's liability is it to pay these overdraft fee's, mine for not endorsing the check, the seller's for not checking to make sure the check was fully endorsed and for writing overdrafted checks without having confirmation of the check clearing or US banks for crediting the account and telling him it cleared.

I talked with a lawyer and she said that it was the bank's fault, but I'm still scared that he's gonna take me to court.

Answer 1

I think your both at fault. But he's lost money,, you haven't. So maybe you should split the cost, and be done with it. Besides that would be better than him suing you and trying to get more than that!

Answer 2

The seller's at fault for the overdraft fees. You didn't write those bad checks, he did. It's his responsibility to ensure he has money in his account to cover the checks he's writing.

Answer 3

While he can make a case against you for the fees, he won't win. He is ultimately responsible for the fees and should have known that although the check had cleared HIS bank, that's different than clearinghouse approval.

You need to get navy fed on it's toes.or return the bike.

Answer 4

I agree with Michael C. He wrote the checks before the money was actually deposited in his account more then likely. His problem.

Answer 5

Its the sellers fault. He overdrafted his account...not you!

Answer 6

I would say you are both to blame and you should pay half of his fees that he incurred.