Cancelled check fee question

[nevergiveup]

Say someone owes you money and they mail you a check for it which ends up getting lost in the mail. You call them telling them that you never got the check. They say they will send another one but it is going to be minus the check cancellation fee they will incur (around $30).

 

Do you think this is right? I can see both sides but, since it is happening to me, I do not believe that I should be the one paying his check cancellation fee.

 

What do all of you think?

[Tap]

I would think it is the sender's responsibility. It is their check and their responsibility. They are cancelling the check to protect themselves, not you. They had the option of sending in a more secured way, with a signature required and they chose to not take that option (I am assuming).

 

If you can, maybe wait a week or so before requiring them to do so. I have seen mail get caught in the machinery at a PO show up a little later than usually (usually mangled with a note from the PO).

[ThatCyndiGirl]

No, it is not right. HE pays the fee. It is for HIS peace of mind, right? This way he knows that you can't cash both checks. (in case he wonders if you are making it up about not getting the check or he is concerned that you might get the first check later and then cash them both.)

 

It sounds as if he is trying to save $30 off what he owes you.

 

Is he close enough that he could drive to your house and hand it to you or did it HAVE to be mailed?

[mysticamethyst]

um...no way would I accept that. :glare: It's not your concern if they cancel the check or not you just want the total amount owed to you. The other party does not have to cancel the check that is their choice a smart choice but a choice just the same and in no way should you have to pay for it. I am sorry you are having to deal with a crusty situation, I hope it works out for you.

[nevergiveup]

Hey--Thanks everyone!

 

You all have said pretty much what I was thinking. I have already waited over 2 weeks for the first check, giving the Post Office extra time--he lives 3 hours from here so it shouldn't have taken more than a day or two at the most.

 

I guess a terse letter is in order! Thanks again!

[QueenCat]

Have you already sent him the item he bought? I would not send it without full payment.

[happi duck]

This sounds like a way out of paying full price...how could you know the check really was sent?

[nevergiveup]

I know the check was mailed because he dropped it off at my sister's house and she put it in an envelope and mailed it. I do not know why he could not be bothered writing out an envelope and mailing it himself, but that is another question.

 

Surprisingly, this has become a huge argument with my dh. He says that the guy paid me (because it was accepted by my sister) and therefore, I should be the one paying for him to cancel the check and send another. I don't understand his logic because if I send, say, a check to the mortgage company or utility company and they never get it and I decide to put a stop payment on it, then I don't get to deduct that amount when I send another check.

 

If some third party intercepts a check to me and forges my name on it, who is responsible for that lost amount? The bank because they did not check ID? Or is the check writer just out that money?

[QueenCat]

I know the check was mailed because he dropped it off at my sister's house and she put it in an envelope and mailed it. I do not know why he could not be bothered writing out an envelope and mailing it himself, but that is another question.

 

Surprisingly, this has become a huge argument with my dh. He says that the guy paid me (because it was accepted by my sister) and therefore, I should be the one paying for him to cancel the check and send another. I don't understand his logic because if I send, say, a check to the mortgage company or utility company and they never get it and I decide to put a stop payment on it, then I don't get to deduct that amount when I send another check.

 

If some third party intercepts a check to me and forges my name on it, who is responsible for that lost amount? The bank because they did not check ID? Or is the check writer just out that money?

 

This new information changes my opinion. He did pay you when you allowed it to go through your sister. She accepted full payment on your behalf. He needs to protect himself from forgery by canceling the check, and should take it out of the new check he sends you. I would require him to send it directly to you. But I would give the check a few more days to arrive in the mail... just in case....

[Melissa in FL]

I know the check was mailed because he dropped it off at my sister's house and she put it in an envelope and mailed it. I do not know why he could not be bothered writing out an envelope and mailing it himself, but that is another question.

 

Surprisingly, this has become a huge argument with my dh. He says that the guy paid me (because it was accepted by my sister) and therefore, I should be the one paying for him to cancel the check and send another. I don't understand his logic because if I send, say, a check to the mortgage company or utility company and they never get it and I decide to put a stop payment on it, then I don't get to deduct that amount when I send another check.

 

If some third party intercepts a check to me and forges my name on it, who is responsible for that lost amount? The bank because they did not check ID? Or is the check writer just out that money?

 

Sorry, at first I was going to agree with you. But knowing that he gave it to your sister (your agent) I think you have to pay the fee. Whenever we've had a large check mailed to us it has been in an envelope and then put in a priority mail envelope. The person has also paid extra for the USPS to track and insure it. Since it was your sister who mailed the check to you and not the person who owes the money, it was up to her to get tracking and insurance on the envelope. She was your agent and the borrower had believed the payment was made once he dropped your check off to your agent. You agreed to use your sister as such.

 

In your example above about Utility Company payments. If you mail them and check and it never gets there then you should pay the fee. If you instead go to Walmart (where they accept payment for local utility payments) and pay your Utility and the check is lost after you do that, then they are responsible to pay the fee (their agent lost the check). In your case you agreed to use your sister as your agent and she essentially lost the check, so it's your fee.

 

However, I would at least ask your borrower to pay half, he might agree to it and you'll be out less money. Ultimately though, I think you are responsible to pay the fee. Next time tell him to mail it in a priority envelope with tracking and insurance (at least enough to cover the fee). Make it clear to him that if you do not get the check in your hand he will have to cover any fees from now on.

Melissa

[nevergiveup]

See? It does get more complicated. I was trying to be brief, but I guess I should have been more clear from the beginning.

 

My sister was not my agent. This man rents a small amount of property from her as well as from my other 2 sisters and myself. He paid her rent and included our checks in with hers unbeknownst to her. She found out later that our checks were in with hers and just mailed them on ahead. No one authorized him to submit payment to her since in the past he has mailed the checks directly to each of us separately. I guess he was just trying to save some postage and my sister was just being nice. One sister did get her check and we other two did not.

 

I still view it as having a contract with someone for a specified amount and them not paying said amount. I did not tell him to give someone else my check nor did I direct him to cancel the first one; that was his decision.

 

Clear as mud?

[RegGuheert]

I think I would insist that he write a new check and let him know the risk for the old check is entirely his. How he deals with that risk is entirely up to him. You can also promise that you will not cash *both* checks if you end up receiving them both.

 

Perhaps in the future he will take consideration in how he makes his payment.

[Tap]

Your new information changes things for me.

 

If you sister had sent it back to him, and then he mailed it to you, he would be responsible.

 

Since she addressed the envelope, paid the postage, and dropped it off to be mailed....she accepted the responsibility of the check.

 

Technically, she would be responsible. He passed it off to a person who accepted the check. Even though she didn't cash it.

 

 

To use your example....It would be like you handed a check to a person at the mortgage company, that person forwards the check onto the right department but it got lost along the way. If you were the homeowner, who do you think should pay the fee now? You handed it to someone at the mortgage company, and they accepted it. I expect that you would think the mortgage company would be responsible.

 

Just because you never authorized the check to be paid to her, doesn't relieve her of the guilt once she agreed to take it.

 

 

Since you know for certain the check was mailed, I would give it some time. She may have put the wrong zip code or something on it.

[nevergiveup]

The one good thing that has come of this is that I will be changing the way I do business with him!

 

Tap, in thinking about your scenario with the mortgage company: if I mailed them a check and it reached their institution, but the wrong department received it and it got lost when they forwarded it to another department of theirs, I would believe that they were responsible for the loss; however, I doubt that I could do anything about it. I am certain that they would contact me and insist that I send another check for the full amount and whether or not I chose to cancel the first check and incur those charges would fall to me (even though I would be thoroughly P.O'd). I have a contract with them stating that I owe them a specific amount due at a specific time. If they found the check at a later date, they should offer to reimburse me (in an ideal world), since it was their institution that made the mistake.

My sister has a separate business arrangement with him than do my other 2 sisters and myself. We are separate businesses, so to speak, so it would be more like sending your mortgage check to your electric company.

 

I am glad for all the input I have received here but there is no way I am going to blame my sister especially since he never told her he was giving her our checks, she did not discover them until a couple of days later, and she was just doing a good deed by forwarding them on.