How do I collect on a stop payment check?

[gallardo]

I just had a client stop payment of a check for services and product. I have attempted contact with no response. How do I collect what’s owed on this check?

[irsGuru]

How long have you been attempting to contact them? If it's just been a few days, you might just want to send another invoice. Send it certified mail so you have a record that it was received and who signed for it.

If it's been longer and you have sent multiple notices, you might feel that they are just trying to avoid you altogether. You can go to small claims court (depending on the amount), win a judgment, and then pursue collection action like levy of bank accounts or liens on property.

[Wilson]

Originally Posted by gallardo

I just had a client stop payment of a check for services and product. I have attempted contact with no response. How do I collect what’s owed on this check?

What state?

If you sue someone who has stopped payment on a check written to you, it is possible under some circumstances to be awarded the damages allowed by the "bad check" law (Check your State for local laws). These damages would be, in addition to the face value of the check, three times the amount of the check with at least a $100 penalty and a maximum of $1500.

The following conditions must be met in the case of a stop payment check:

1. You must send the maker of the check by certified mail a notice providing the information given in the sample below.

2. You must produce in court a copy of your written demand and a signed, certified mail receipt showing its delivery, or attempted delivery if refused, to the maker's address.

3. You must prove that the maker did not stop payment in order to resolve a good faith dispute with you. Examples of a good faith dispute would be the maker's claim that the goods were not delivered, were defective or that there was an overcharge.

4. You must be able to show in court that you made a reasonable effort to resolve the dispute before going to court.

If you have not received payment within 30 days from the date you mailed the notice you may file your claim in Small Claims ($5,000 limit) or in Municipal Court.

[Kajsa]

Originally Posted by gallardo

I just had a client stop payment of a check for services and product. I have attempted contact with no response. How do I collect what’s owed on this check?

This Check Stop Payment Demand Letter will help you.

[gallardo]

Originally Posted by Kajsa

This Check Stop Payment Demand Letter will help you.

Bought it. Thanks!