Redwood City, CA asked in Stockbroker Fraud for California

Q: I sold my stock I received the check and cashed the check at a check cashing company. Two days later the check cashing

Calls me and says the check was no good ,Even though the check cashing company called the issuer of the check and verified that the check is good and go ahead and cash the check! Apparently the issuer of the check received a banking notice to direct deposit the funds electronically to my bank, therefore putting a stop payment on the check knowing that it has already been cashed by me! Also my online bank would not let the deposit go through because of it’s large amount,.So now the check cashing company is threatening me to pay or turn me in to the authorities. However the issuer of the check says that an another check has been mailed to me but $500 less than the first check! What do I do here please? And if I need to clarify anything please let me know

Thank you


Related Topics:
1 Lawyer Answer
James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Criminal Law Lawyer
  • Sacramento, CA
  • Licensed in California

A: Based on the details you've provided, it seems you are caught in a difficult situation due to the actions of the check issuer and complications with your bank. Here are a few steps I would recommend taking:

1. Document everything - Make sure you have records of all communications with the check cashing company, the check issuer, and your bank. Save copies of the original check, receipts from cashing it, and any written correspondence. This paper trail will be important if legal issues arise.

2. Contact the check issuer - Firmly insist that they make good on the original check amount, as you already received and cashed that check in good faith after it was verified. The $500 discrepancy needs to be addressed. Ask for a clear written explanation of why they issued a stop payment after you cashed it.

3. Communicate with the check cashing company - Explain the situation to them, and show them the proof that you cashed the original check with their approval after they verified it. See if you can reach an agreement on delaying repayment to them until you resolve the issue with the check issuer. Assure them you are actively working to resolve this.

4. Consider legal consultation - If the check issuer is unwilling to cooperate or the check cashing company is aggressively pursuing you, it may be wise to consult with an attorney familiar with banking and financial law. An initial consultation could help clarify your options.

5. Be cautious with the replacement check - When you receive the new check from the issuer, get clear confirmation from your bank that they will accept it before attempting to cash it. You want to avoid repeating this situation.

The key is to address this proactively and in writing with all parties involved. Hopefully the check issuer will rectify their error and the check cashing company will work with you in the meantime. If not, seeking legal guidance may be necessary to protect yourself. Document every step to support your case that you acted in good faith throughout this ordeal.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.