Legal Question in Credit and Debt Law in California

I received a letter from Continental Currency Services notifying me that a check that I had written to a handyman was cashed at their store and then the check was returned as a duplicate, meaning it had already been cashed via a mobile device. I contacted my bank and the bank has a record of the deposit (without signature) on 3/1. The Check cashing store says they cashed the check-in person on 3/4. They are trying to tell me that I owe them the $580 that they paid their client who cashed the check + $25 fee for the returned check. I would assume they have assumed the risk of cashing the check and I would also assume they need to pursue the party who cashed the check rather than me. Am I liable to repay the check cashing store? I live in California


Asked on 3/12/21, 11:28 am

1 Answer from Attorneys

Timothy McCormick Law Offices of Timothy McCormick

If your bank accepted the mobile deposit without restrictive endorsement, something to the effect of "by mobile deposit" with the payee's signature, they are liable. If the check cashing store took it WITH the endorsement, they were on notice that they could not deposit it. In either case you are not liable.

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Answered on 3/15/21, 1:20 pm


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