Legal Question in Credit and Debt Law in Illinois

Can a currency exchange ownwer sue me for a check that I wrote to a funeral home for services that was never performed, I wrote the check on 7/2/07 and placed a stoppayment on that item on 7/3/07 due to the local news reporting that the owner of the funeral home ran off with the money from customers who paid for services. I saw the news report and called my bank and placed a stop payment on the check. The owner went to the currency exchange and cashed the check that was payable to the funeral home as was cashed anyway. The currency exchange is claiming Holder in Due Course as to the lawsuite being filed against me.


Asked on 10/04/09, 8:13 pm

1 Answer from Attorneys
Adam S. Tracy Securities Compliance Group Ltd

In theory, they can sue you. Currency Exchanges essentially "buy" the checks that they cash, and with that assume the rights of collection thereunder. You have defenses that you can raise here that would serve you well in court. Specifically, i would (a) file a third party claim against the funeral home for breaching the contract, fraud, conversion (eg, theft); and (b) file defenses against the currency exchange stating that the check was stoppped prior to their cashing it (therefore making the exchange of the check void). Feel free to email me if you have any further questions, I would love to be able to help here. [email protected].

Thanks

Adam Tracy

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Answered on 10/13/09, 11:16 pm


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