Her stop payment left my account negative $2000.00

[Jross]

What is the name of your state? Tennessee

I do some home repair side work for people, to make some extra money. However my last job has taken a turn for the worst. On receiving a second payment of $2500.00 for services I deposited the money in my account. I started paying some bills and spending the money. All was good until the women who wrote the check placed a stop payment 9 days later. The bank then pulled the funds out of my account and left me under 1600 dollars. Since then all my checks still out are bouncing out of control. Now I am under a big $2000.00.
What do I do? Is this illegal? Can I sue the bank and her?

 

[Debt Guy]

You can sue anyone.

You can't sue and win against the bank unless there are facts that you have not brought forth. By facts, I mean if you both bank at the same bank and the bank took sides.

You can sue and win against your client.

The first thing you should do is contact the client and determine why she stopped payment and resolve any dispute as best you can.

If that does not work, then you go to court. Unfortunately, in the meantime, you are in a deep hole on cash.

 

[Jross]

Is this not considered theft of services? Is there not a time frame to which a bank is held to withdraw the funds?

 

[Debt Guy]

There is a lady on this board who is really familiar with current banking practices -- Veronica, I think. Perhaps she will respond or you might try to send her a private message.

My banking days were long ago -- but here is what I remember.

You deposit the check into your account. Your bank (the payee bank) processes the check internally. Depending on the relationships, the payee bank will send the check to the payor bank (the person who wrote the check).

If the payee bank and payor bank don't have direct relationships, then the payee bank send the check to its upstream correspondent. The upstream correspondent will send the check to the payor bank. If the upstream correspondent does not have a relationship with the payor bank, then the check is send to a "cross" correspondent which then sends the check downstream to the payor bank. Sometimes it goes all the way up to the Federal Reserve Bank and back down again. There are something like 8000 banks in this country and they don't all have relationships with each other.

I know this is all confusing. The point is that at every step the bank has a certain amount of time to do its thing and pass it on to the next step. When I was a banker it was 2 days for each step. I know it is shorter now since there is more automation.

Now, a certain number of days has passed since you made the deposit and the check is presented to the payor bank. The payor bank goes to post the check to the customer account and says "oh, no. there is a stop payment". Now the entire process is reversed.

It can take days for a check to be presented and returned. As I recall weekends and holidays don't count.

In order to know whether a bank in the system did not move the paper timely, you will need to know the current regulations and what the steps where in the process.

It can get complicated. Or, just go sit down with your banker and say "lets look at this and figure out if someone messed up". They may or may not be cooperative.

Again, Veronica is your best bet for info.

As to your question -- no, it is not theft of services by the bank.

You totally ignored the question I left you with in the last post. What is the beef between you and your client?

The bank has no dog in the fight between you and your customer. Why do you want to drag the bank into the fight?

 

[absconder]

TAKE the check to the local ADAs office and press bad checK charges. Also file a lien on your materials and labor on her property. SAVE ALL OF YOUR RECIEPTS..............Writing bad checks can be a felony in certain jurisdictions for theft of services.

 

[Jross]

I did not mean to ignore the question, my apologies. I turned an old carport into a room addition, and did some remodeling for a client. She continuously changed her mind and I obliged with no argument however closer to the end changes and complaints and arguments started getting worse. I tried my hardest to oblige with out any problems however I can't work in a bad environment. She had already given a secondary payment and I cashed it *(The $2500.00)* 6 days later she refused to work with me to allow me to do finishing work or fix any complaints she had. 3 days later she stops payment on the check. Now she owes that $2500.00 and the final payment of $2500.00. I had offered to take $1000.00 off of the bill to end all services there. She refuses to work it out. Now I am $2000.00 in the hole and cannot pay a lawyer upfront. I can't even buy the tape recorder to tape our conversations. I am at a lost. I have a family to support. No money means I can't pay suppliers to take on new jobs.
I am new to buisness so not wise on any of these issues. Thank you for any advise and help.

 

[Jross]

I should be getting the check in the mail today. I will go downtown tomorrow. Appreciate the advise

 

[Veronica1228]

There is a lady on this board who is really familiar with current banking practices -- Veronica, I think. Perhaps she will respond or you might try to send her a private message.

My banking days were long ago -- but here is what I remember.

You deposit the check into your account. Your bank (the payee bank) processes the check internally. Depending on the relationships, the payee bank will send the check to the payor bank (the person who wrote the check).

If the payee bank and payor bank don't have direct relationships, then the payee bank send the check to its upstream correspondent. The upstream correspondent will send the check to the payor bank. If the upstream correspondent does not have a relationship with the payor bank, then the check is send to a "cross" correspondent which then sends the check downstream to the payor bank. Sometimes it goes all the way up to the Federal Reserve Bank and back down again. There are something like 8000 banks in this country and they don't all have relationships with each other.

I know this is all confusing. The point is that at every step the bank has a certain amount of time to do its thing and pass it on to the next step. When I was a banker it was 2 days for each step. I know it is shorter now since there is more automation.

Now, a certain number of days has passed since you made the deposit and the check is presented to the payor bank. The payor bank goes to post the check to the customer account and says "oh, no. there is a stop payment". Now the entire process is reversed.

It can take days for a check to be presented and returned. As I recall weekends and holidays don't count.

In order to know whether a bank in the system did not move the paper timely, you will need to know the current regulations and what the steps where in the process.

It can get complicated. Or, just go sit down with your banker and say "lets look at this and figure out if someone messed up". They may or may not be cooperative.

Again, Veronica is your best bet for info.

As to your question -- no, it is not theft of services by the bank.

You totally ignored the question I left you with in the last post. What is the beef between you and your client?

The bank has no dog in the fight between you and your customer. Why do you want to drag the bank into the fight?

Hey, what do you need me for? You're doing just fine.

I agree that it would serve no purpose to attempt to bring either bank into this. Your client's bank placed a stop payment on your check at your client's request. They then requested that your bank debit your account for this stopped check. As far as the banks are concerned this is a done deal and has nothing to do with them. They were both just following policies and regulations.

However, something you said did send of a tiny little warning bell. How long was the length of time between when you deposited the check when it was returned unpaid? Federal Regulations dictate that an original check must be returned within two business days after it was deposited. If it is a photocopy in lieu of an original, then the issuing bank has up to six months. In your original post you said something about 9 days. Can you clarify that?

If the banks did not meet these deadlines this would be the only possible recourse available to you if you want satisfaction from your bank.

 

[Jross]

I deposited the check on April 1st and it was withdrawn from my account on April 10th. I tried talking to the banks but they refuse to acknowledge any wrong doing.

 

[Veronica1228]

I deposited the check on April 1st and it was withdrawn from my account on April 10th. I tried talking to the banks but they refuse to acknowledge any wrong doing.

Did you get the item back in the mail? Is it the original check, or a photocopy in lieu of original?

 

[Jross]

I just checked the mail and no check however the orignal copy should be in my mail by tomorrow.

 

[Veronica1228]

I just checked the mail and no check however the orignal copy should be in my mail by tomorrow.

When you get it let me know which it is. This could be your only hope for working with the banks, and getting your money quickly.

 

[Jross]

I called the bank and they said that I would be receiving the check it self.

 

[absconder]

WOW what was I smokin? I dont remember. NO EXCUSES. I messed up.

 

[absconder]

2 Windows maybe?.......... IM STILL WRONG.