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Home >> Checks/Money Orders >> Money Orders
Paid by Money Order; It was Cashed, but not by Me
I run a small web design company with a friend, and we finished up a site for a client a few months ago. After I mailed the client the bill for the site, he claims that he sent a money order to my address. However, after giving it two weeks (taking into account the occasionally erratic Chicago mail system), the money order did not arrive.
I notified the client; however, he reported that the money order had been cashed. I told him that I had not cashed it, so he issued a claim with his bank (Bank of America). After a six week investigation, the Bank of America apparently stated that the cashing of the money order seemed legitimate and they have no reason to return the client's money. I'm currently waiting on the client to send me a scanned copy of the letter he received from Bank of America.
He did not request a return receipt from the money order. I'm wondering, is he still liable for the amount of my bill? I'm not sure if he's lying about the claim (though I'll likely have a better idea once he sends me the letter).
How can I resolve this situation and still get paid? He owes me $1000. Is there a reason that the bank cannot refund his money? Since the company is small, and has not been registered as an LLC yet, consulting an attorney is difficult, so I thought that you might be able to give me some advice on the best course of action.
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 Bank of America can't recover the amount it paid on the money order unless you provide, through your client, an affidavit that you or your company did not endorse or receive any benefit from the money order, in other words, that the money order endorsement, if any, was forged or otherwise improper. Once you supply such an affidavit, B of A should be able to reimburse your client, who still owes you the money, and recover the money from the bank that took the money order for deposit.
Published on BankingQuestions.com 11/14/08
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