Hello, last year I cashed a business check at a local cashier near my house. A few weeks after I cashed the check the the owner closed her business. This week I received a letter from a collection agency requesting I pay back the check plus fees because the check eventually bounced and was not paid to the cashier. Am I liable to pay? The collection agency mentioned the UCC and holder in due course. Please help.
1 Answer from Attorneys
Yes, you are obligated to pay the amount of the check and fees. The collection company may accept a lower settlement amount to close out the debt, but you will have to pay something it you want to resolve the bad check.