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As a small business operator,
personal checks may be one method to receive payment for
your goods or services. As a way to receive payment, a
personal check is actually better than credit cards
because the fees are less and there can be no charge back.
Fortunately, most people
are honest and studious in taking care of their checking
account. But sooner or later every small business operator
will receive a bad check. The first thing to do is
politely contact the individual and give them an
opportunity to make the check good.
Most times you'll find that
the customer has simply been careless with their checking
account or finances. They will probably be embarrassed
about the incident and will immediately replace the check
with a good one. Unfortunately, there are rare occasions
when the individual who gave you the bad check decides to
make themselves scarce.
Note: If a personal check
is for more than a few dollars, it's best to let the check
clear before delivering the product or service. Say, for
example, that someone wants to buy your car with a
personal check for twice what the car's worth. Remember, a
check is just a piece of paper until after it clears. They
can return to pick up the car after the check clears, or
you can offer to drive with the individual to their bank
to get the cash.
There are three reasons why
a personal check may not clear: "insufficient
funds", "account closed", or "stop
payment". The proper action to take depends upon why
the check didn't clear. 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
afer 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.
If the check was returned
because of a "stop payment", you have a civil
matter. Some people try to save time and work by filing a
crime report for ANY check that doesn't clear. This can
result in the individual who gave you the check being
arrested. They may miss work and encounter a host of other
problems as a result of your FALSE crime report.
I said FALSE crime report,
because an individual who puts a stop payment order on a
check almost always does so because of dissatisfaction
with a product or service. The accused individual is now
in a position to countersue for the problems caused as a
result of your FALSE crime report. This could end up
costing you a lot more than the value of the check.
Sooner or later every small
business operator will receive a bad check. The first
thing to do is politely contact the individual and give
them the opportunity to make the check good. If that
doesn't work, many people try to save time and work by
filing a crime report regardless of why the check didn't
clear. It's very important to determine why a check didn't
clear before deciding on a course of action.
Disclaimer: Stephen Bucaro
is not engaged in rendering medical, legal, accounting or
other professional service. If legal advice or other
expert assistance is required, the services of a competent
professional person should be sought.
Copyright(C) Bucaro
TecHelp.
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