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

UPDATED: Oct 1, 2022

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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 4 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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