Legal Question in Banking Law in California
I hired a general contractor to do some remodeling on my home. We agreeded on a total price for the work and I wrote a down payment check for the work that was to begin the following day. When the subject did not show up the following day I put a stop payment on the check. Now I have received a letter from a check cashing place that states I am liable for to pay them that amount and if I do not they will take action. What are my options?
1 Answer from Attorneys
It depends entirely on whether you notified the contractor of the stop payment before they endorsed it over to the check cashing place. If the contractor knowing passed an invalid check, the person defrauded is the check place and they have to pursue the bad guy. If they took a good check, however, the person defrauded is you and you must pay the check and go after the contractor. In either case, however, you should file a complaint with the contractors state license board and a claim against the contractor's license bond. Info on both can be found at cslb.ca.gov
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