I placed a stop payment on a lost check and reissued another. However both checks were cashed and I am now being sued for not honoring the first check. What is my liability in regards to the first check that was fraudulently cashed? How should I go about resolving this issue?
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You're liable to the check casher (we presume it's a check cashing store) for the amount of the check, because the store had no way to know that the check wasn't good, and accepted it in good faith. Your only recourse would be to try to collect the duplicate payment from the duplicitous payee who defrauded you.
Published on BankingQuestions.com 1/16/08
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You're liable to the check casher (we presume it's a check cashing store) for the amount of the check, because the store had no way to know that the check wasn't good, and accepted it in good faith. Your only recourse would be to try to collect the duplicate payment from the duplicitous 