Check Cashing Liability

[emmiem81]

Am I liable to "Check into Cash" in Washington state for a now insufficient funds payroll check that they authorized a month ago? You must first sign an agreement that states that you are responsible for the amount of the check.

Is this actually legally binding, or must they first show a reasonable attempt to recover funds from the issuer of the check?

Also is it legal for the "Check in Cash" representative to call me and threaten FBI action if I did not pay $500 within 2 hours? What is the proper process for them to attempt to collect from me?

[itdepends]

Are you implying that "Check into Cash" did not attempt to have the check honored? If so, then tell them you'll give them the money when they return the check. Then you can cash it elsewhere.

If the check was dishonored, however, then you definitely owe "Check into Cash," and you'll have to seek recovery from the issuer.

There is nothing wrong with demanding that you pay. There is nothing wrong with calling the FBI. The "Check into Cash" probably won't get anywhere unless it sued you.