Legal Question in Credit and Debt Law in Virginia
Do I have to return a bad check to the writer/drawer?
I received a bad check (personal check) from a customer for services rendered. After numerous phone calls and letters, I finally received payment to cover the original check plus fees--in the form of a business check. I took a chance and deposited the replacement check and, after 14 days, so far it looks like it's OK (although my bank takes a long time to send notification of a returned check, so who knows).
Now the customer is asking me to return the original bad check. Am I obligated to do this, or is the original check considered my property to do with what I wish (e.g. file it, destroy it)?
2 Answers from Attorneys
Re: Do I have to return a bad check to the writer/drawer?
Once you are sure that the replacement check has cleared, you should return the bad check. The maker of the check has reason to be concerned, as it is still a valid negotiable instrument, and if there is now money in the account it would be honored. But you should make sure the replacement check is good first (14 days should be long enough, but check with your bank).
Re: Do I have to return a bad check to the writer/drawer?
Mr. Press raises a very good point, about the danger of the check being resubmitted for double payment. However, the question I had is WHY you would want to keep the check? Obviously if the second check does not clear you should take steps to sue for this. You should consult an attorney because you can sue for 3 times the amount of the check if the writer of a bad check refuses to make it good. But if the 2nd check clears, you have no real reason for wanting the check. The only other possibility would be to prosecute him. But my fuzzy recollection of that is that you can't prosecute him either if he makes the check good with a replacement check. So if you don't get paid the second time, you have lots of things to think about, of course. But if the second check goes through, there don't seem to be any benefits to holding on to the check that outweigh the concern Mr. Press illuminates.
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