Question about banking

Young Farmer

In the Brooder
7 Years
Feb 22, 2012
65
2
41
Bedford NH
So im a landscape contractor by trade (chicken farmer by choice) and I did a job for some one who ended up being very cheap and...long story short they wanted me to do a job in a way that I knew would only cause more issues in the end (which happened) and that It would not be my fault. There is a contract that is in place that states all of the legal stuff. How ever they paid me on the 16th and on the 19th issued a stop payment on the check, I looked at my account online as soon as I found out from them via email (which was a very nasty email i might add) and the money is in my account which i assume means that it cleared there bank. Now can they take the money out of my account since the check has already been paid to me? Any help would be awesome im loosing sleep over this as you can see.
 

thaiturkey

Songster
9 Years
Feb 22, 2010
2,390
37
191
Thailand
I suggest that you get straight down to the bank with the contract and a copy of the email to get the answer direct from them.

Having said that, I think that only credit card payments can be reversed at the request of a payer if there is a dispute. The only other way to force a refund that I know of is through legal action. However, the law where you are may be different.

Good luck!
 

Carols Clucks

Songster
9 Years
Oct 13, 2010
1,789
26
153
Just because the money is in your account does not mean the check has cleared their account. They would likely not be able to place a stop payment on it if it had. Expect that money to be reversed out of your account and the check returned to you.

Make sure you leave enough money in your account to cover that check and a returned item fee.

Also, keep copies of all contact with the customer, emails, text messages etc.

Check with with your local small claims court for info on filing a claim and the max amount you can sue for and the sue them.
 

thaiturkey

Songster
9 Years
Feb 22, 2010
2,390
37
191
Thailand
Just because the money is in your account does not mean the check has cleared their account. They would likely not be able to place a stop payment on it if it had. Expect that money to be reversed out of your account and the check returned to you.

Make sure you leave enough money in your account to cover that check and a returned item fee.

Also, keep copies of all contact with the customer, emails, text messages etc.

Check with with your local small claims court for info on filing a claim and the max amount you can sue for and the sue them.

I think the way to check that is to compare the 'balance' with the 'balance available', or whatever wording is used in your area, on your statement.
 

Carols Clucks

Songster
9 Years
Oct 13, 2010
1,789
26
153
I think the way to check that is to compare the 'balance' with the 'balance available', or whatever wording is used in your area, on your statement.
Actually, it can take a couple of days from the time you deposit a check in one bank before it is presented to the other bank for payment. This can vary by the banks involved. If at the point the check has been presented to the customers bank has been stopped by the customer, it will not be honored and returned to your bank.

Your bank will then remove that amount of money from your account along with a fee and return the check (or a copy) to you. It also takes extra time for the check to be mailed back to you depending on the day of the week and location of the postal processing centers.

The "available" balance listed has nothing to do with the check actually clearing, just that your own bank has given you the use of the funds.


(years as an operations officer in a bank)
 

remuda1

Songster
8 Years
Jun 12, 2011
471
4
101
Granbury, Texas
I agree with Carols Clucks. However, if your check is presented for payment to thier bank prior to their placing the stop payment, then they cannot come back and take it out of your account. Most times the bank will check to see of the check has cleared before they will place the stop payment. But if they did it on the computer, who knows. If you ever find yourself in this situation again, the very best thing to do would be to go to thier bank and cash that check as soon as they hand it to you. Prior to that point though, documenting all of the pertinent information and getting all of the particulars (outside of the parameters of your contract) in writing will help you as well. Good luck with it, as the wife and office manager of a self employed contractor, I know how unpleasant and exhausting this kind of thing can be.
 

duckinnut

Songster
9 Years
Jul 18, 2010
1,935
93
186
Marshfield, Ma.
I hate to be the Monday morning QB but knowing what and whom you were dealing with you should just have gone to the bank it was drawn on(their bank) and cashed the deposited the money into your account. Even if they charged you a cashing fee it would be worth it. I would rather lose $20 to cash it than lose $1000 by a stop payment order. People really bite, more so ones than want it done cheaply then complain it cheap. I won't work for people like that, I would rather do it right and never see you again than chase money from you after I gave you what you wanted.
 

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