Legal Question in Banking Law in New York
Check recieved from past client who owes us a substanital amount of money, was p
We have been fighting with a company to repay outstanding funds for services rendered by our company. We are only consultants, and do not have any legal background. This client sent a check as payment for outstanding expenses to us, and we deposited into our account, they also wired funds as payment to pay down thier outsatanding balance from $56K down to $51K. The check was deposited on the 11th, and cleared on the 14th. We made a withdrawl on the 17th, once in the morning against the funds, and again in the afternoon against the funds.
The bank sends us a letter stating that the check was no good, because it was put on hold, the bank holds us accountable? We verified with the Bank via Internet, and in person to ensure funds were available and good. This company had put a hold on the check at the last minute, causing our Bank to lose the money, and hence the Bank is now coming after us because of the other companies bad check?
Who is repsonsbile for this check that is not good? The company who owes this outstanding balance, and the one who placed the check on hold at the last minute or us? We would take them to collections however they have our money. - JRJ
2 Answers from Attorneys
Re: Check recieved from past client who owes us a substanital amount of money, w
The person or entity that writes a check is responsible for ensuring that the funds are made available to the payee in a timely fashion. Banks, however, generally don't care about this and are eager to be reimbursed for any monies they are out of from any source. It sounds like you need to file a claim to get your money from this company. I'd be happy to discuss this matter with you after reviewing the documents of the transaction. I offer a 15 minute free consult. Thanks and good luck.
Re: Check recieved from past client who owes us a substanital amount of money, w
It is my understanding that if the check does not clear the drafter's bank your lending institution would not be responsible for telling you that the funds are available. However, I never heard of an individual putting a stop payment on funds that were wired.
I think you need to obtain more information from your bank as to what happened.
Mike.
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