Who is responsible for a bounced check when it is cashed at a check cashing store?

My son is a car detailer and received a check for services rendered. He needed
cash and took it to a check cashing store and cashed the check. Now weeks later
the check cashing store is contacting my son about NSF for the check. Isn’t the
person who writes the check responsible for funding the check? Any light shed on
this would be greatly appreciated.

Asked on January 11, 2018 under Business Law, California


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

The person who cashed or deposited the check which bounced has to pay the bank or check-cashing location its NSF fee, but can then recover that money from the person or business whose check bounced. Whomever gave your son the check not only needs to make the check good but needs to pay any costs, fees, etc. your son incurred in connection with it bouncing. If that person or business does not pay your son what he is owed, he could sue them for the money, such as in small claims court as his own attorney ("pro se"). And if he does not pay the check-cashing store their fee, they could take legal action against him.

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