If a customer sent us a check for an outstanding invoice but then called to tell us not to cash it because their bank will not honor it, what happens if we deposit it anyway?

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If a customer sent us a check for an outstanding invoice but then called to tell us not to cash it because their bank will not honor it, what happens if we deposit it anyway?

Asked on December 9, 2015 under Business Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If you deposit it anyway, if there is insufficient money in his account, the check will bounce and theoretically, if he incurs any NSF fees, you could be liable for them. Ask him to let you know when the check will be honored, or provide a credit card, or send a money order. If he will not, then you can inform him that you may take collections actions for the money, and if he still doesn't pay, you could send to a collection agency and/or sue.


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