Paid in bounced checks... Anyone ever get missed payments back?

Question

Tenant lived in my friends brownstone here in NYC and rented the upstairs apartment for $2000/month.

Tenant is late on payment and then says sorry, I just need another week. And plays this game for a while. Finally gives my landlord friend a check that proceeds to bounce. Apologizes profusely... and then next month gives another check that bounces.

After two months, finally vacates the property without saying anything. Landlord has his social security number. And proof of two bounced checks. No leases. Doesn't know where he moved to.

Has anyone gotten money back from such a tenant? He owes $4,000. He had no security deposit.

Marcia Maynard · Answer

Thanks BP friends for the tips.  Several years ago I invoiced a tenant for charges that exceeded her security deposit.  She mailed me a check for the amount due.  I deposited it into our bank account and found out later that she stopped payment on the check.  We contacted her, and she said she was disputing some of the charges and would write us a letter.  Was going to respond when I received the letter, but never did receive her dispute letter.  I was bewildered and not very savvy as to how to handle it.  I waited a long time trying to decide what to do, then it dropped off my radar.  Lost $350.  Ouch.

Patrick L. · Answer

Check the bad check laws in your state.  Here if I provide them with a specific notice via certified mail which gives them 30 days to pay the face value of the check plus a fee (there are guidelines on the fee).  If they don't pay within 30 days I can turn it over to the state's attorney for prosecution.   Over $150 here is a felony.   Usually the threat of those charges make them find or borrow the money from somewhere.

I have never had a bad check go unpaid, but I don't take a lot of checks.  Most of my rent is paid in certified funds.

David Krulac · Answer

@Steve Candor

1.  We have in our leases that after the FIRST bounced check, we will NOT accept personal check only certified or cashiers checks.

2.  Depending on your statelocal law passing bounced checks may be a felony.  Here there are two applicable laws one for passing a check on an bank account that is closed and another for passing a check on an account with insufficient funds to cover the check.  There are specific steps you need to follow, but you can initiate criminal felony charges with the police for bouncing checks.  If convicted the offender can get jail time (it would usually be in the county jail), and have to pay restitution.

Duncan Taylor · Answer

@Steve Candor,

Bouncing a check is fraud in NY. Your friend needs to file a police report and get them prosecuted.

Tamara R. · Answer

I have heard of people taking bounced checks to the bank (where the checking account is) and asking if there are sufficient funds to cover it in the account.  If there are, they cash the check there at the "bouncers" bank.  If they know when pay day is, that might be a good day to do it.

James Wise · Answer

No lease, no deposit. Professional tenants will see your friend from a mile away. He really has to tighten up his standards or this type of stuff will happen over and over again.

Bill Gulley · Answer

Checks can be presented twice. As Steve mentioned, you'll need to take Articles of Incorporation, company authorization for you to act (depends on the entity) and your ID to make a demand, or deposit twice in your account and let the bank clear it. After two demands of presentment if it fails to clear, turn it over to the local prosecutor, they probably have a bad check division. Here, usually, eventually, it will be paid, if it isn't, send local collection letters to your local jail, that's where they will be. LOL

Kendall T. · Answer

Bouncing a check is fraud, this person could go to jail.  You could go ahead and file a police report, or first it may be easier to go to their bank and ask if there is enough money in the account before you cash it.  If there isn't you should just go ahead and file a police report.

Steve Babiak · Answer

Although this idea works when the check is made out to a human that has proper ID, when the check is made payable to a company it's a different story.

Joel Owens · Answer

Yes check on the state laws. Writing a bad check in GA for example over 500 is a felony.

I would check into the criminal route but first consult a local eviction attorney there to see what is involved to prove without a lease. May never see the money but make them pay in another way and hopefully keep them from doing it to others.

Paid in bounced checks... Anyone ever get missed payments back?

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