check cashed after stop payment
At the request of a former employee,
we put a stop payment on a lost
check and re-issued a new check.
The employee cashed both checks.
Now the check cashing company is
requesting money from us as an
HIDC. Do we pay them and try to
collect from the former employee? Or
is it their burden to collect from him?
Re: check cashed after stop payment
A Holder In Due Course has power to collect if it does not have notice of the stop payment. Obviously the culprit is the employee, whom both of you should be seeking, along with the police for the fraudulent cashing.
