check cashing center and stop payments
I gave a contractor a check for $1497.00 and then had numerous problems with his work the day after. He said he was licensed and turned out he wasn't. I stopped the check but apparently he had submitted it to a check cashing center. They cashed his check even though his driver's license which he used as ID was expired. Can the check cashing center come after me for the amount?
Re: check cashing center and stop payments
I assume the check cashing center did not get the word that you had stopped the check in time. I also believe that the check cashing center has procedures in place which absolve it from negligently negotiating drafts.
I believe that your bank (the maker's bank) can come after you for the $1497 because the drawing bank (the check cashing center) was a holder in due course of the draft (negotiable instrument).
In addition, I believe the contractor, who endorsed the draft and guaranteed its genuineness, is also liable for the draft; but I assume that your bank will try and collect from you, as maker of the draft, first.
