Legal Question in Consumer Law in California

How long can someone legally hold your check before cashing it?

I bought a car from an auto broker over 2 years ago (12/06/03). I used a Visa convenience check in the amount of $500 for the down payment and the remaining balance of the car was paid via check from Etrade. The car is now paid in full and I have the pink slip.

One month ago I closed my Visa account due to the high interest rates and shortly after I get a notice in the mail stating this Auto Broker has just now, two years later, tried to cash the check for $500. They didn�t bother to contact me and ask for a new check even though the check I gave them clearly stated that it is void for all purposes after 02/20/2004. The credit card company now has charged me a $37.00 check fee and the auto broker is stating they�ll take me to court if I do not pay them. Do I have any legal rights here? How long can someone legally hold your check before cashing it? Can they hold me liable for this even though I hold the title to the car?

Thanks for the help


Asked on 8/17/05, 3:17 am

2 Answers from Attorneys
Daniel Harrison Berger Harrison, APC

Re: How long can someone legally hold your check before cashing it?

Call eTrade. The may waive the charge. As far as the $500 check goes, you still owed it. It is just unfortunate that it took so long and the process was unorganized.

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Answered on 8/17/05, 10:43 am
Carl Starrett Law Offices of Carl H. Starrett II

Re: How long can someone legally hold your check before cashing it?

You do owe $500, but I would dispute the $37 with Visa or maybe see if you can negotiate that off the $500 with the dealer. Most checks are "stale" after 6 months, but I don't know if that applies to cash advance checks from a credit card. I can't believe the car dealership waited this long to cash it and I can't believe their bank allowed them to deposit it.

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Answered on 8/17/05, 1:04 pm


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