Legal Question in Banking Law in California

I'm a check cashing place who cashed a third party check and was returned from the bank for stop payment. I called the campany who wrote the check and said check was lost and that is why they stop payment. They refuse to pay me. As a check cashar , do i have the right to collect?

Thanks

Ed Ibrahim


Asked on 1/27/10, 12:23 am

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

You may be entitled to collect as a "holder in due course." Under Article 3 of the Uniform Commercial Code, a holder in due course is someone who buys a check without knowledge, for example, that payment was stopped. You could send the check to collections or sue them.

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Answered on 2/01/10, 12:58 am


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