Legal Question in Banking Law in Georgia

I gave a personal check for $625 on Friday evening to a contractor to do some bathroom work on Saturday morning. The total job was $1400 and he said he needed it for materials. I received a call from Check Exchange asking me if the funds were available. I ask them if he was legitimate and they said yes he was a regular customer for a couple of years. He did not show up and will not return my calls. I called Check Exchange and they told me if I stopped payment they would sue me. If he had taken it to the bank the bank would have charged it back to him. Does Check Exchange have no responsibility? Should I stop payment anyway? I have also found out this sold called contractor has scammed others.


Asked on 11/19/11, 6:06 pm

1 Answer from Attorneys
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

You learned the hard way that you NEVER pay contractors in advance.

If you do stop payment Check Exchange can sue you, so you have to decide if that is worth the risk.

Your options are few. If you have some information on the contractor you can try to sue, although that may chase good money after bad.

Some but not all police departments, with the above facts, might treat this as criminal fraud where you could seek a warrant for his arrest (others may tell you to sue).

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Answered on 11/19/11, 6:15 pm


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