TOPIC: Bounced Checks

In the last two weeks I have gotten a rash of bounced checks. This happens periodically, but not like this. Are you experiencing the same thing?

It's usually the same excuse - oh, my wife forgot to transfer money, I didn't realize you would deposit it so quick, the same old blah-blah, etc. I have since been properly paid, all except one.

One guy, who claimed to be buying a $1.4 mil house for cash, wrote me a business check for the inspection. I didn't notice but he back dated it one week. It bounced. I always call the realtor and have him/her contact the client. This time the realtor had moved to Texas. She said that the whole thing was a fraud. Apparently everything this guy did bounced, ALL the way to settlement. His website*, up on the day of the inspection, is mysteriously down now. Phone cut off. The address on the check does not exist (he changed a couple of words, but I did find his apartment, empty). The bank account was viable, though empty of funds, on Friday when I called him on another number I found. I returned to the bank on Monday to see if funds were there and it had been closed. I think I'm stuck with a jerk!

The D.A.'s office said I can prosecute criminally or go to small claims court. But neither is a guarantee. There is nothing to attach and they told me that I would obviously win my case against him, but that there was no guarantee that I would get anything out of him from the judgment. He is not around and they do not go about trying to find people. So here I am. I don't think it's worth the time, effort or stress to go after the twerp.

I have been doing inspections for 27 years. I can't remember this ever happening before.

The laws in this country really favor the scam artists - you can't evict someone for months when they are living in your house and not paying rent - you can't go after people for bad money if they have covered themselves sufficiently - you can't, you can't, well, you know! We are at the point of saying to people - cash, bank check or money order - no guaranteed checkie, no inspectie...

Is this a sign of the times or what? I was interesting in knowing - are you experiencing the same thing?

Caveat inspector...

* The Auto Innovators - Gabriel Cunningham ("Gabe").  Business plan - mobile wi-fi connections that move with the car.  Interesting, but don't trust this guy!!

Jay,

I've been hearing this from inspectors here in California for years. That's why quite a few guys I know have gone cash or credit card only, no checks! This was one of the reasons I started negotiating credit card processing deals for us as a group in the first place.

I do know it a few states the penalties are VERY severe for bouncing a check and thos guys never have a problem. Definitely not the case here especially with the number of illegals that have bee buying homes.

For sure.  But even with credit cards - they can cancel the card payment if they have a disagreement.  Sure they have to go through the arbitration with the card company, but still could win if they had enough argument about something done or not done. 

It might be that bank checks, money orders or cash are the future for me...

With the credit cards one they've typed in their security code, address and all their other info it becomes VERY hard for them to dispute. You provided a service, have a signed contract showing you provided it. Yes, still possible though but I've yet to see it happen.