Stop Payment On Check Cashed By Third Party
A check was issued by UMB bank to a courier company. The check was taken to a check-cashing service to be cashed as it was more convenient for the Payee. Approximately three days after the check was cashed, the bank put a stop payment on the check. Services were rendered for a portion of the period the check covered. The check-cashing place said they were taking the check to the State's Attorney for prosecution against the Payee. The bank told the check-cashing place they were putting the stop payment on the check because they were unhappy with our services.
At the time the stop payment was placed upon the check the bank was apparently unhappy with our courier service and they favored a competitor. Prior to the day the stop payment was placed, the bank was pleased with our services and had no complaints. Can the Payee of the check be criminally prosecuted even though Payee had no idea that a stop payment would be placed upon the check days after it was cashed? What legal remedies are available to the Payee, if any? Does the actions of UMB not paying for services rendered constitute ''Theft of Services?'' Who is responsible to cover the amount of the check?