Checks and Fees (Sorry accidentally closed the previous post)

[RNCTN]

What is the name of your state? TN

I have a business I wrote a check to in June. The check was returned, but I replaced the check within 4 hours. The issue is that now, since the business had 5 checks that were returned to them because of my returned check, they want to charge me 32.00 for each of their returned checks plus my check...so 6 returned check fees. Is this right? legal? Can someone help me find exactly where it states in the laws for TN that you can do this? The fees are not stated/listed as other collection fees, simply returned check fees for check and 5 other company checks. I have been disputing this for several months. What do I do?

 

[seniorjudge]

Pretty soon they will start blaming you for the war in Iraq.

Tell them to bite rocks.

You will pay YOUR fees but no one else's.

 

[RNCTN]

Exactly what I have said for a while now. Now they are saying two things:

1. If I don't pay be noon tomorrow they will file suit at the courthouse locally. (This is the company talking, not a collection agency or anything.)
2. They have their attorney stating they can collect on those other charges.

Do you know where I can find the specific law for TN so I can have them tell me where in the law it states they can charge these other check fees?

 

[seniorjudge]

Q: Do you know where I can find the specific law for TN so I can have them tell me where in the law it states they can charge these other check fees?

A: Ask them where they get the authority to demand damages that you did not cause?

 

[RNCTN]

They are saying that my returned check caused the other 5 to bounce and if mine hadn't come back that the others wouldn't have....does this change anything???

 

[RNCTN]

Also, as you can tell...this is a very small company.

 

[TigerD]

Tell them to go screw a goat:

Tennessee bad check laws:

http://www.lawdog.com/states/tn/checks.htm
A person who, with fraudulent intent, issues a check which is dishonored either by stopped payment, or because of the lack of funds or failure to have an account with the drawee bank, or lack of an authorized signature, may be subject to civil liability for the face amount of the dishonored check, interest at the rate of 10% per annum, reasonable service charges, court costs and attorney fees if a civil action is brought to recover the check amount. (47-29-101(a).) The service or handling charge may not exceed $20.00. (47-29-101(f).) The maker of the dishonored check may avoid these liabilities if within ten (10) days after notice of dishonored is given by the holder of the check to him, he pays the holder the full amount of the check. (47-29-101(b).) Notice of dishonor is considered to have been given if it is deposited in the regular United States mail and addressed to the maker at the address printed on the check or at the address given in writing by the maker to the holder at the time the check was given. (47-29-101(c).)

If the written notice is sent by the holder to the maker of the dishonored check by certified mail, and the maker failed to pay the full amount of the check within thirty (30) days, the maker of the dishonored check may be responsible for treble damages not to exceed $500.00 if fraudulent intent is found. (42-29-101(d).)

The holder of a dishonored check may also elect to pursue his claim under Tennessee's Criminal Statute, Title 39, Chapter 14. Under subsection (f) of section 39-14-121, passing a worthless check may be punishable as theft of property or services which is a misdemeanor if the amount is $500.00 or less, or a felony if it is above $500.00.

From the AGs office:

http://www.attorneygeneral.org/buscrime.html
Tennessee Code
Section 39-3-302

(a) A person commits an offense who, with fraudulent intent or knowingly:

(1) Issues or passes a check or similar sight order for the payment of money for the purpose of obtaining money, services, labor, credit or any article of value, knowing at the time there are not sufficient funds in or on deposit with the bank or other drawee for the payment in full of the check or order, as well as all other checks or orders outstanding at the time of issuance; or
(2) Stops payment on a check or similar sight order for the payment of money for the purpose of obtaining money, services, labor, credit or any article of value; provided, that such money, credit, goods or services was as represented at the time of the issuance of the check or similar sight order.
(3) This subsection shall not apply to a post-dated check or to a check or similar sight order where the payee or holder knows or has good and sufficient reason to believe the drawer did not have sufficient funds on deposit to his credit with the drawee to ensure payment.

(b) For purposes of this section, the issuer's or passer's fraudulent intent or knowledge or both of insufficient funds may be inferred if:

(1) The person had no account with the bank or other drawee at the time the person issued or passed the check or similar sight order; or
(2) On presentation within thirty (30) days after issuing or passing the check or similar sight order, payment was refused by the bank or other drawee for lack of funds, insufficient funds or account closed after issuing or passing the check or order, and the issuer or passer fails to make good within ten (10) days after receiving notice of that refusal.

(c) For purposes of subdivision (b)(2), notice shall be in writing, and, if the address is known, sent by certified mail with return receipt requested, and addressed to the issuer or passer at the address shown:

(1) On the check or similar sight order if given; or
(2) If not shown on the check or similar sight order, on the records of the bank or other drawee if available.

(d) If notice is given in accordance with subsection (c), it may be inferred that the notice was received no later than five (5) days after it was mailed.

(e) Notice shall not be required:

(1) In the event the situs of the drawee is not in Tennessee;
(2) If the drawer is not a resident of Tennessee or has left the state at the time such check, draft or order is dishonored; or
(3) If the drawer of such check, draft or order did not have an account with the drawee of such check, draft or order at the time the same was issued or dishonored.

(f) The offense of issuing or passing worthless checks is punishable as theft pursuant to 39-14-105. Value shall be determined by the amount appearing on the face of the check on the date of issue.

(g) Nothing herein shall be construed as amending or repealing the Fraud and Economic Crimes Prosecution Act, pursuant to 40-3-201. [Acts 1989, ch. 591, 1; 1990, ch. 1030, 20.]

My understanding of how this applies to your situation as you told it is: You have to pay the $20 bad check charge and make the check good, which you did. If their business is so under capitalized that 5 checks bounced, they don't have enough capital to run a business.

DC