Cancelled Check

[Calibusiness]

What is the name of your state? California

I am one of the owners of an S-corporation who uses independent contractors. We issued one of our contractors a check then realized that she completed the job with errors and would not return our phone calls or emails to corrrect her work so we issued a stop payment on her check. I now recieved a phone call from moneytree and wanted to know why we issued a stop payment on the check and that since they cashed it we are now responsible for it. The check is only for $75. I would just like to know if this is true that we are responsible for a check that we have already put a stop payment on? Moneytree is threating to turn us into collections if we do not pay the check.

 

[Veronica1228]

What is the name of your state? California

I am one of the owners of an S-corporation who uses independent contractors. We issued one of our contractors a check then realized that she completed the job with errors and would not return our phone calls or emails to corrrect her work so we issued a stop payment on her check. I now recieved a phone call from moneytree and wanted to know why we issued a stop payment on the check and that since they cashed it we are now responsible for it. The check is only for $75. I would just like to know if this is true that we are responsible for a check that we have already put a stop payment on? Moneytree is threating to turn us into collections if we do not pay the check.

First of all, this is not a cancelled check. A cancelled check is a check that has already cleared an account.

Second, there are only a few valid reasons for placing a stop payment on a check such as a check that is lost or stolen, issued in error, posted dated, stale dated etc. Dispute with payee is not one of them. However, the person who has a case against you is the payee of the check, not Moneytree. They need to go after the person you issued the check to. If they are throwing the term "Holder in Due Course" at you tell them that it does not apply here since the check was not issued to them.