Is writing a check and intentionally stopping payment consider a fraud?
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Is writing a check and intentionally stopping payment consider a fraud?
We run a piano studio and take payment a month in advance. There is a policy that students sign and it says once payment is made for a month there is no refund for unused lessons if you quit before month’s end. A parent wrote a check for a month, had a lesson once, and decided not to continue so is demanding the check that she wrote be given back. I said I will refund the rest of unused lesson but would charge for the one taken already. I wrote a check for what she paid, minus one lesson fee. She stopped payment on the check that she gave me but cashed my check. She now has my money. Is this considered a fraud?
Asked on January 13, 2011 under Criminal Law, Illinois
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
"Fraud" depends on intent as well on actions. Depending on her intent, it *may* be fraud, though if she just erred, slipped up, didn't pay attention to the timing, etc. it would not be fraud. (Fraudulent intent involves knowingly acting bad, to oversimplify, not just making a mistake or even having a good faith dispute over what's owed and how to pay.) Even if not fraud, of course, you could sue her for what she owes you--including suing in smalll claims court, so as to reduce your costs substantially--and also for direct out of pocket costs, such as any bounced check or overdraft fees if any resulted from the timing of the transactions.
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