Legal Question in Banking Law in New Jersey

I received two checks from a friend. These checks were legitimate checks. apparently for whatever reason the person's account was canceled. But my bank went ahead and cleared both checks. I spent the money that was cleared and given in my account. Then when the bank was not able to get their funds, they made my account negative. Both checks took some time to clear and it is not understandable to me that they went ahead and cleared them without knowing the account was canceled. Due to this they have closed my account for an unknown reasons. They will not tell me why. But I am responsible for the funds to pay them back. When I think they were in the wrong for clearing checks and providing the money in my account. My question is now that my account is closed and I am responsible to pay that money back which I don't think I should have to. Is there anything I can do to try to fix this situation.

Asked on 5/06/20, 9:52 pm

1 Answer from Attorneys

Locksley Wade Law Office of Locksley O. Wade

The best thing that you can do is to reimburse your former bank. You have an agreement ( a contract) with your bank that -in a nutshell- you are responsible that all fund deposited to your account are good funds. The bank is now owed money for bad check. What the bank can do is to report your obligation as bad debt to the credit rating companies. Therefore, it would be in your best interest to re-pay the bank and then ask your friend to make good on the checks otherwise sue your friend in small claims court and then enforce the judgment in your favor.

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Answered on 5/07/20, 4:43 am

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