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Law Firm Collecting Old NSF Check

Date: Thu, 03/29/2007 - 07:56

Submitted by SUEBEEHONEY70
on Thu, 03/29/2007 - 07:56

Posts: 4583 Credits: [Donate]

Total Replies: 12


I have a situation that came up recently that I find myself at a loss on.

Last year, in late summer (Sept, to be exact), I was given a check, which I deposited. I trusted the person that gave it to me, and wrote checks against it immediately. The deposited check bounced, causing 10 of my checks to bounce. In the mess that followed of checks being re-deposited to my bank, bouncing again because of the charges levied by the bank depleting my account balance, as soon as I would put money in, it would be gone again. I finally closed the darn account in frustration and paid all the checks off with the individual companies I had written them to. Or so I thought.

A few weeks ago, I received a phone call from a law firm in New York, claiming to be collecting on one of those checks. It was a small check - either $7 or $9 - written to a local convenience store. They demanded I pay $205 to them immediately, or face "legal action". I never received anything in writing from this collection agency or law firm regarding this check. In reviewing my records, it does appear that I overlooked paying for this one in the mess I was dealing with. Because I never heard anything more on it, it was very easy to forget, I guess.

I called a local attorney about this matter this week - they said it's not a criminal matter, since the check is so small, but they could try to sue me in civil court. I had the attorney contact the law firm/collection agency that called me, and they requested a representation letter from the attorney. She faxed one to them, but she's on vacation until Monday now, so I have to wait to see what results from this.

Anyone have any thoughts on this, what may be the "law firm"'s next step?


Sue,
I remember you being in Michigan.This text is from lawdog.com.It is legal requirements on a bad check collection.

[quote]Bad Check:

Any person who makes and delivers a bad check may be subject to payment of the amount of the check, double damages in an amount not less than $50.00 but not more than $500.00, if a written demand is sent to him and he fails to pay the amount of the check within 30 days. The written notice shall be mailed by certified mail, returned receipt requested and delivery restricted to the addressee. The text of the written demand must be as follows:


"On _________(date) a check drawn by you for $ _______ was returned to us dishonored for [ ] not sufficient funds [ ] no account. If you do not pay to us, within 30 days of the time you receive this notice, the full amount of the check in cash, we have the right to bring an action against you for 2 times the amount of the dishonored check ($__________) or $50.00, whichever is greater, or to make a criminal complaint against you. If you do pay to us, within 30 days of the time you receive this notice, the full amount of the check in cash, we will not take further action against you."


An action may be brought in the small claims division of the District Court if it does not exceed the jurisdiction of the small claims division or in any other appropriate court. If the maker pays to the payee the amount of the dishonored check plus reasonable costs not to exceed $50.00 before trial, then the payee shall not be entitled to the double damages as provided above. (MSA 27A.2952.)[/quote]


lrhall41

Submitted by cajunbulldog on Thu, 03/29/2007 - 08:14

( Posts: 4850 | Credits: )


Suebee- haven'tdealt with this personally, but my youngest had some overdraft fees at his bank after he closed it. An attorney sent a letter pretty much stating what yours did, we called and set up a payment, half one pay period and half the next, and there was no problem. They charged some fees tacked on to it, so it was more than the actual fees, but they didn't take him to court..Karen


lrhall41

Submitted by Bossy4455 on Thu, 03/29/2007 - 08:19

( Posts: 5854 | Credits: )


Thank you for the pointers everyone.

I never received a letter (certified or otherwise) from the collection agency. I do recall receiving a letter from the original creditor (in this case, the convenience store I wrote the check to), but it was not sent by certified mail - just regular mail. Like I said, in all the mess of trying to get things straightened out, I must have overlooked paying this one, and it kind of fell through the cracks.

My issue is not with paying for the bad check itself, or the fees the convenience store incurred as a result - my issue is with this collection agency tacking on over $150 worth of "fees" in an attempt to collect it.

Since the collection agency/law firm that contacted me has requested (and received) a letter of representation from my attorney, what does that appear to indicate? That they intend to sue? I'm thinking they won't be able to get the entire amount they're asking for it they do, from my interpretation of the law posted by cajun above. Am I correct? If they try to sue and I pay the amount of the check plus reasonable costs not more than $50 before it goes to court, then it's taken care of and they can't demand the $200 they're asking for now?

By the way, my attorney advised me not to pay them anything until she gets a response from them. I've never received a letter from the collection agency/law firm - just a phone call.


lrhall41

Submitted by SUEBEEHONEY70 on Thu, 03/29/2007 - 09:07

( Posts: 4583 | Credits: )


Sue,
I agree just let the lawyer take care of it.. That's what you pay her for..
Relax All States have legal limits as to what can be charged.. You know that... :D And you know all CA try to charge what they want...
I have a 16.00 bill out with a CA.. I know it is a bill and not a check.. But they told me they will keep calling but do nothing because it is under 50.00.. and they will not even report it to the agencys.. I told them as soon as I see the bill stating the creditor I would pay the bill.. Yet to see or hear..
Relax..
Judy


lrhall41

Submitted by Poptarts.mom on Thu, 03/29/2007 - 09:33

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