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Recovering Funds from a Bounced Check

My client deposited two checks to my business account. Both bounced and now he is not answering my calls. Is he committing fraud? Can I take him to court or how else can I recover my money?


It's not wise to allow a client to deposit checks to your account, because you lose control over what types of checks for which you become responsible. If the checks were payable to your business, you were correctly charged for them when they bounced. However, if the checks were not payable to your business and not actually endorsed by the business, you were not liable for them, and you can ask your bank to reimburse you and go after your client, who would have made the deposit of the checks fraudulently. There are a lot of "ifs" in this. That's because we don't know enough about the checks or how they were deposited to your account to be able to give you more than a guess on how you should proceed. You should probably take your questions to an attorney.

Published on BankingQuestions.com 9/24/09