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"Bounced" check fee in contract?

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gruuvkat

Junior Member
What is the name of your state (only U.S. law)? VA

I wrote a check to my daycare provider in early June from a then-current/open checking account. I since moved my checking account to another bank and closed the original account on which the June check was written. My daycare provider seemingly just found this check and deposited it this week without mentioning to me. Of course, it did not clear (because it was from an account I closed some time ago). Our contract states that I owe a $30 bounced check fee for checks that do not clear, but does this situation really adhere to that provision based on the situation and four (4) month delay on her end? Had she deposited when the check was given to her - or even within 2 months of that - it would have cleared. Alternatively, had she called me to say she just found it and was depositing, I would have given her a new check from my new account that would have also cleared.

Any thoughts out there?
 


justalayman

Senior Member
of course it applies. You should have been aware of any outstanding checks when you closed the account and either kept the account open with enough to cover the checks or swapped a check from the new account for the check from the old account.

Checks are valid for a long time. While a check is considered stale at 6 months, it is still actually a valid check and a bank can honor it.
 

sandyclaus

Senior Member
What is the name of your state (only U.S. law)? VA

I wrote a check to my daycare provider in early June from a then-current/open checking account. I since moved my checking account to another bank and closed the original account on which the June check was written. My daycare provider seemingly just found this check and deposited it this week without mentioning to me. Of course, it did not clear (because it was from an account I closed some time ago). Our contract states that I owe a $30 bounced check fee for checks that do not clear, but does this situation really adhere to that provision based on the situation and four (4) month delay on her end? Had she deposited when the check was given to her - or even within 2 months of that - it would have cleared. Alternatively, had she called me to say she just found it and was depositing, I would have given her a new check from my new account that would have also cleared.

Any thoughts out there?
Why would you think the fee wouldn't apply?

You gave them a check to pay for services rendered. The childcare provider can deposit it anytime they want, be it the same day or even months after you gave it to them. They had no reason to think that the check would never clear until it didn't.

YOU, on the other hand, were the one responsible for balancing your accounts, and should have noticed that this check had not yet cleared, and made the efforts to contact the childcare provider to find out why. I'm sure THEY would have told YOU that the check had been misplaced and asked you to give them a replacement (presumably from the NEW account you now had), making a bounced check charge a moot point (as the OLD check that was no good would probably never have been negotiated).

So, bottom line here, since YOU failed to notify the childcare provider that an uncleared check would no longer be valid (because of the account closure), YOU would be responsible for payment of the bounced check charge.
 

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