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Home >> Checks/Money Orders >> Checks You Received
Possible Check Kiting: What should I do?
Someone I know asked me to help him with a loan. I did and he wrote me a check back on the same day. He said that he didn't want to wait for his own check to pass the required hold and that he needed the money now. I then found out that he did it several other times with other people I know. Is this check kiting? What should I do?
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 Well, it may not be a kite, but it looks a lot like the same sort of thing: "borrowing" against uncollected funds, in this case, from you instead of a bank. Take his check, assuming it's not dated in the future, to his bank as quickly as possible, and try to cash it. Don't deposit it in your account, because it could bounce. If you are successful, take your cash and promise yourself not to lend him any more money.
If you're not successful, contact this acquaintance and tell him you want your money back in exchange for his worthless check. If he refuses, you can contact the police. Writing a worthless check is against the law.
Published on BankingQuestions.com 9/14/07
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