What to do if we had a contractor who promised us work but didn’t do it so we stopped his check but he cashed it anyway?

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What to do if we had a contractor who promised us work but didn’t do it so we stopped his check but he cashed it anyway?

We had given him a check for $1600 which we stopped. However, he managed to cash it at a check cashing place. Now the check cashing place is demanding the money from us. Can they force us to pay them legally?

Asked on February 24, 2015 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It depends on the timing and how/why it was cashed. If they cashed it before the stop payment was fully in place, then they can get payment from you; but if they cashed it after the stop payment was implemented, then they should not be able to. Ask you bank to help out--if the bank failed to put the stop pay in place correctly or in a timely manner, you bank should be liable for the amount; otherwise, they should be able to help you deal with the check-cashing place.


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