I put a stop payment on a lost payroll check, it was found and cashed without ID, am i at fault?

Question

I lost my paycheck and immediately put a stop payment on it, it was found by someone and they cashed it in a mexican food store after i had put the stop payment order on it, now the owner of the store is saying that i have to pay him for the money he lost. If he didnt check for ID or a SSN, do i have to pay him?

Answer 1

No if your company put a stop payment on it the bank has to deal with it. You have no relationship with the store, he took a check that wasn't good so it is his problem.

Answer 2

Most checks are automatically void after one year so I'm surprised that your bank even accepted it; which could be useful if charges are filled. Yes, you are at fault and truthfully, the employer won't have to do anything if he did file a 'Stop Payment' because the bank will go after you first. I'd return the money to the bank with a good excuse of some kind.

Answer 3

You have several defenses. One is that even if they were an Holder in due course, there was no proper indorsement. Secondly, not checking for ID would indicate a lack of good faith, disqualifying them from being a Holder in due course. Forgery works in any case, and under UCC 3-420 you can sue the bank that the check was taken at for conversion. Problem solved.

Answer 4

Of course you're not at fault. That dishonest ignoramus who cashed the check is at fault as well as the owner of the store for not checking the ID. If he files for a small claims case, counter sue for the inconvenience.

Answer 5

Tell the store owner he needs to locate the person who cashed the check. That is his lost. My guess is he will ask for ID in the future.

You owe him nothing. If he threatens to sue. Tell him I'll see you on Judge Judy.

Don't pay

Answer 6

No. Fill out an affidavit stating that it wasn't you cashing the check and you won't be held responsible.

Answer 7

I agree with shiprepairwoman.

Answer 8

No