I don't post here often, but I look at this board almost every day for the last few years... but I need to vent: I work full-time during the day and I have a small business out of my home. I do alot of accounting work for local small business and do some work (mostly taxes) for individuals. Anyway, I had done work for an individual (very complex tax return) in Jan and the guy wrote me a check which bounced. I have tried, in vain, to collect. I had no other alternative but to turn him over to a collection agency that handles bad checks in my area. Well, yesterday I get a fax from the collection agency. He sent a C&D letter and I get in the mail today a letter that wants to me to prove the debt is his, wants to know if I used the balance for a tax deduction, how much did I sell the account for, etc. Well, I have sent him several copies of the check when I tried to collect, but he just ignored me. Any advice? I know this is a little different since I am trying to collect on a bad debt. Thanks! Greg
Not paying your credit cards is one thing, writing a bad check is totally different. He's just trying to make your life so difficult that you'll throw up your hands and walk away. He has committed a crime and in some states, depending on the size of the check, it's a felony. Go visit your local constable or whomever handles it in your state. It's really simple: pay or jail.
Gregory, My hatred for people who write bad checks is unhealthy. I've seen many small business'seriously hurt with hot checks. First of all, this is a business transaction so, there is no FDCPA protection. Secondly, when Congress passed the FDCPA I doubt seriously that they intended criminal acts should have protection. I agree with Austin Guy. I'd have his ass in court ASAP.
Not paying your credit cards is one thing, writing a bad check is totally different. He's just trying to make your life so difficult that you'll throw up your hands and walk away. He has committed a crime and in some states, depending on the size of the check, it's a felony. Go visit your local constable or whomever handles it in your state. It's really simple: pay or jail. keepmine -------------------------- Can't you turn the bad check over to your local DA to collect? Personally, I'd sue his butt. AustinGuy ====================== Does this apply to a bounced check copy too? LB 59
Well, essentially what this guy is asking for is for validation from the CA so that he can get this off his report. You need to go talk to the DAs office.
Thank you keepmine, AustinGuy and rblues for your replies. lbrown, I have no idea what planet you are transmitting from, but I did not understand your posts. I called the DA's office and spoke to a really cool rep. Unfortunately, it is a big process to turn over checks to them. But she asked if it was drawn on a bank in this state and I said yes. She said to call the bank and see if funds were available in the account and if there are, go into any branch and present the original instrument and ask for a "pay on demand". The bank should issue a cashier's check to me. So I called and --- there ARE funds in the account right now. I will go as she said and see if I can finally collect this money. Thanks again all ~ I just get really frustrated at times and can't think clearly Greg
In Oregon you take it to the sheriff's office and they will do the rest. If you contacted him by mail, giving him a chance to make the check good and he did not you can also collect damages (Treble I think). It's in his best interest to make good on his bad check and stop messing around with you. Tuit
========= Thanks again all ~ I just get really frustrated at times and can't think clearly Greg ====== Must have been what caused you to say the following. No wonder you didn't understand. `````````````````````````````````````````````````````` lbrown, I have no idea what planet you are transmitting from, but I did not understand your posts. Gregory LB 59
lbrown. If the person to whom the check was written presents that check to a financial institution for payment, how would they have the original cancelled check?
The bank returns it to you when it is not honored. I am assuming Gregory has the check to show the Sheriff, and will have it on hand when he and the guy are in front of the judge. Tuit
Bad checks are a debt and do fall under the FDCPA for collection. In my state once a bad check is turned over to a collection agency the AG won't accept it back into it's bad check program. I think it is highly more effective to turn bad checks over to the State for prosecution or failing that submitting them to scan or telecheck. I don't condone bad check writers, but, if you're going to have a collection agency collect for you, why don't you just validate and then sue him -- that's the path you're already on. Sassy
Greg, You've received a validation request. Well, you shouldn't have received it, it should have been mailed to the collection agency. Bad checks are a debt covered by the FDCPA and you chose to turn this over to a collection agency so you have to play by the rules. You don't want to end up with violations of the FCRA, FDCPA and Unfair Trade and Deceptive Practices Act while trying to get the money due you. The collection agency needs to cease ALL collection activity and if this has been reported to a CRA they need to mark the tradeline as "disputed by the consumer." Make sure there's documentation that they have done this -- no doubt this guy will be pulling his reports to find out. Have the collection agency send him a copy of the check he wrote, front and back (it has to come from you and be mailed by the collection agency -- not the other way around). Neither you or the collection agency have to answer his questions if you don't want to. If you want to, answer them, have the collection agency return them to him with a note saying here is the validation you requested, pursuant to the requirements of the FDCPA. Tell him whatever action you intend to take -- read the FDCPA. Send it certified RRR to keep your butt covered. Don't communicate with him again (C&D), update the tradeline to each of the CRA's, and proceed with whatever legal action you can take in your state. You told the DA it had been submitted to an agency for collection, yes? I hope in your state they will still pursue collection and prosecution for you. If not, do small claims. Don't though, get yourself in trouble with violations in the meantime. Sassy
THE FAIR DEBTCOLLECTION PRACTICES ACT AND BAD CHECKS The Federal Trade Commission ruled that the FDCPA applies to collections for checks returned for insufficient funds under the following circumstances. "To the extent that an NSF check(Nonsufficient Funds Check) was written by a consumer for goods or services intended for household or personal use, the continuing obligation to pay constitutes a debt under the FDCPA, and... actions to collect such debts are covered by the FDCPA." (Priv. Ltr. Rul.952-3127, 4/30/96; see ConsumerCredit Guide (CCH) 83,707,6/18/96). Sassy
The FDCPA says a CA CAN bring on a lawsuit within the first 30 days. Was his validation request before the end of the 30 days? If NOT, then it CAN still be reported, but marked as in dispute. If it was before the 30 days it has to be removed. A copy of the check is fine, you can't possibly send him the actual check and then have a leg to stand on in court LBROWN. I can see it now, yeah judge he wrote me a bad check. Judge: ok let me see the check Oh I dont have it I gave it to the bad check writer. RIIIIIIIIIIGHT, that'll fly!
That's how to handle this. But HURRY before he reduces the balance to below the check amount. Like first thing in the morning!
