I wrote a check in January 2005, that was never cashed by the merchant. I closed the account without realizing that the check was not cashed, and recently received a letter from the merchant stating that the check was deposited twice and returned for non-sufficient funds. The merchant says that she wants payment or will take me to court. Is there a legal timeframe which she has to cash a check?
No, there's no legal limit on the merchant's deposit. However, it's clearly to a merchant's advantage to deposit checks quickly. It's been shown that the sooner a check is deposited, the more likely it will be good. Regardless of the merchant's delay, however, you do owe her the money for your purchase, so it would be wise to contact her and pay your obligation, otherwise, you could find that she will be quicker to act on dragging you into court than it was in depositing the check.
Published on BankingQuestions.com 4/02/08
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No, there's no legal limit on the merchant's deposit. However, it's clearly to a merchant's advantage to deposit checks quickly. It's been shown that the sooner a check is deposited, the more likely it will be good. Regardless of the merchant's delay, however, you do owe her the money for your purchase, so it would be wise to contact her and pay your obligation, otherwise, you could find that she will be quicker to act on dragging you into court than it was in depositing the check.
