I recieved a check as a gift from an ex fiance to help me pay off my car. When he wrote me the check we were together, and on the for line he stated it was a gift. I called the bank it was written upon to verify if I could still cash it. They took the date and the account number and amount and told me no problem. They confirmed that I needed to go to the branch it was written upon to cash it with an ID. The next day I did just that. After succesfully cashing the check I deposited a substantial portion of it into a new account I opened right then at that bank. The rest I took home in cash. After three days with no word from the bank I began to pay off some bills with the cash I had taken home. After 7 days the bank contacted me saying that not only had they taken the money I deposited but I was now responsible for paying them the money they had cashed for me. They said that because he had not had sufficent funds they should not have cashed it. Because of the size of the check over 10k I was under the impression that because I went to the bank it was drawn upon that they would have verified the availability of funds on the spot. Because of this I spent the money under the impression their was no way it had not already cleared. I was under the impression that they should be harrassing him for writing me a check that did not clear, not the other way around. They have threatend to take me to collections If I dont pay every penny back. What should I do? Am I responsible for their mistakes? They also said after he was informed of the check being cashed he put a stop payment on it, although he had Ample time to stop it before (months). Thanks for any help im really upset since Ive already used some of the money I supposedly owe back to pay off bills. This is in California if the state matters for this situation. Thanks for any help you may offer. I just dont want to pay for legal help if I am indeed responsible for the banks mistake

This one has me scratching my noggin'. I'm thinking that they screwed up, got stuck with the cashed check, realized that you opened up an account and now are trying to come to you for it to cover their loss.
If you had deposited the full amount, I don't think they could have come back seven days later for an NSF check...especially since it was an 'on-us' item.

You said that when he was informed of the check being cashed, he put a stop payment on it. That was his way of stopping it if you were going to represent it a second time.

Someone correct me if I'm wrong, but with the details that you've stated, I'm thinking your bank is trying to put something past you.

what should i do to correct this problem? are there any more details i can give you? thank-you so much for responding

The answer to the question will depend on how this transaction proceeded. When you went in to "cash" the check, did the teller physically hand you the full amount of the check in cash, you walked over to a desk, opened your account, and took the remainder of the cash home.
OR
Did you verify that at that time your ex had the funds, walk over to a desk to open the account with the physical check still in hand, open the account, and then receive a portion of the check in cash.

The Uniform Commercial Code (UCC) Section 4-215(a) says that a bank has made "final payment" if a check is paid out fully in cash. So once the cash crosses the teller's counter, it cannot be taken back. If senerio 1 is what happened, you have a case against the bank for violating the UCC.
HOWEVER

If the person who opened your account took the physical check to open your account and only gave you a portion of it back as cash, then you are competing with all of the other checks that cleared your ex's account that day. The bank then has the right to decide which checks to pay and which checks to return, and normally they will pay smallest to largest to pay as many items as possible. In this case the bank has the right to charge the check back against your account and require you to pay restition as the bank is allowed until midnight of that day to decide which checks to honor and which to return.

I am sorry for the situtation you find yourself in, and I hope that the first sequence of events is what took place, otherwise I'm afraid you may be out of options.

It is my opinion that the bank is wrong in this case as you state it. You state that you cashed the check. Did you take cash for the check, then open the new account with the cash? If that is the case and the check was drawn on the bank that you cashed it at and they didn't reject it then due to insufficent funds and the stop payment won't work because the order was issued after the check was presented. It would seem to me that your ex would be responsible for the overdraft that was created. When you cashed the check, it created what is called "final payment" and you are discharged of liability under the UCC code. Most states follow the UCC code but I don't know if CA does.

I would also suggest going up the food chain and talking to supervisors and bank management. A branch may be trying to recover its mistake.

To me it sounds like the bank screwed up and you should not be legally liable, but you should talk to an attorney to make sure.

On moral grounds, why would you cash this check after the relationship ended? Why not return it?

Unfortunatly although I told them to cash the check in full and then open the account, the latter is what took place to the eye. Now the question is am I responsible for the portion of cash that they Did indeed give me at the time. Some of that has been spent. I filled out a deposit slip for 7k so I believe that the account was actually opened after the check was "cashed" although I never physically had the full amount of the check in my hand. Am I still responsible for the money that I have spent. I was under the impression that It had all cleared since I cashed it at the issuing bank. Thank you for your help. What steps do I take to protect myself from the Bank taking me to collections over this.

Here is exactly what took place. I asked the bank supervisor or whatever it was at the desks, not a teller to cash the check. During that proccess he asked me about accounts etc. He took my two forms of ID and brought up the account I believe or at least the signature on the computer. I believe he actually did it as two seperate transactions but did the 7k deposit without handing me the 7k. From my receipts is it possible to see how they deposited the amount of money? They also took the money that I deposited in my savings which was definitly cash but a much smaller portion. I feel that I asked for the first situation to take place because I did ask to have the entire check cashed, I believe if it was done in the latter way It was the bank supervisors decision and not mine. Does this make any difference?

total for the check was 10k , 7k was deposited, my account now has -3k for balance, my savings is gone. And the first contact I got was being threatend to go to collections. I feel im really being screwed by the bank I would have rather them not just cashed the check then cash it and take it back. When talking to the employees of the bank they admitted to making mistakes such as not verifying the amount of the check, or looking at the date. Is it illegal for them to take that money and overdraft my acccount without notifying me.

I notifyed him after cashing it as a courtisy, I did not want him spending more and accidently overdrafting his account. I feel because I took the check to the issuing bank because they did not verify it on the spot they made it my fault. I was under the impression that, I went to the issuing bank for that reason and that reason only, If I had thought it had not been verified for funds I would not have spent a penny.