Legal Question in Banking Law in Wisconsin

Stopped check under false pretenses

I was given a personal check on 8/17/05, and deposited it the same day. The money was credited to my account. Today, over a month later, I received the check in the mail stamped ''Stop Payment''. I spoke with this person's credit union, and they informed me that their policy is to only stop payment for lost or stolen checks. Knowing that I now had the check in my hands, she conceded that he must have lied, but that they were unable to go back and do anything. I, of course, have now incurred a penalty fee for this, am out the check amount, and am reeling from the ensuing snowball effect.(a month of thinking everything was in the black has really hurt my account!) The check writer will not take my calls, and I have no idea what to do now. I was under the assumption that a signed check is somewhat of a contract, and according to his financial institution, one cannot simply change their minds about a check. I greatly appreciate any advice you can offer. Thank you.


Asked on 9/28/05, 6:41 pm

1 Answer from Attorneys
H.M. Torrey The Law Offices of H.M. Torrey

Re: Stopped check under false pretenses

typically, a check is in fact evidentiary proof that a contract does in fact exist between the parties at issue, absent any unenforceable provisions/exception in the ACTUAL express or implied agreement between the parties. it represents not only mutual assent between you both, but also sufficient consideration being exchanged to bind the parties. thus, you would be WELL within your rights to collect on this check, just as a creditor would, if the breaching party herein cancelled payment without your consent or legal privilege. thus, you may take the same steps an "ordinary creditor" would legally take to collect on this debt owed to you at this time, including any applicable interest or costs you needlessly incurred due to the unlawful breach. such collection activities can be effectuated by you in or out of court, according to the guidelines of the FDCPA. if you would like further assistance, direction or representation in this matter, contact us today.

Read more
Answered on 9/28/05, 6:53 pm


Related Questions & Answers

More Banking Law questions and answers in Wisconsin