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Home >> Special Situations >>Incapacitated Individuals
Incorrectly Issued Check Causes Big Problem
My elderly father gave a cashier's check to his ex-roommate for some type of deal on which they verbally agreed. The ex-roommate is a hot-head, a violent trouble maker, and actually badgered my father to pay the money before the date on which it was agreed. After many threats and verbal abuse, my dad got a cashier's check for the wrong amount. The check was issued for $16,536.00, but it was supposed to be $1,653.60. The check is 30 days old and has not been cashed yet, and of course the ex-roommate refuses to return the check for correction. Is there any way my elderly father can stop the payment? That money was his life savings.
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 The problem is, a cashier's check is meant to be as good as cash. The bank's name is on that check and it is drawn on the value of the bank, not your dad's account. Your dad could place a stop request of sorts. That is, the bank cancels that check and gets a bond that protects them if that check is cashed. The other person could still cash the check and get its full value, because it is a bank check. This process is normally for a lost item. It doesn't apply when you have second thoughts or made a mistake on the amount.
You may need to speak with an attorney. The other person may be guilty of undue enrichment if they cash the check. That is, they tried to get something for nothing and there was no intent to gift these monies. The other option would be to call a government agency that handles elder abuse in your area, and see if they can provide any assistance.
Published on BankingQuestions.com 2/19/09
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