Legal Question in Banking Law in Virginia

I stopped a check that was sent to a relative, they cashed the check and now they are telling me that their bank is demanding payment or we are both going to jail. Is this a possibility? Can anyone come after me because I stopped payment on this check?

Asked on 5/24/10, 6:46 am

1 Answer from Attorneys

Jonathon Moseley Moseley & Associates Law Firm

Well, it is not a very nice thing to do, at least not without WARNING them not to cash tthe check, because they might then bounce checks as a result.

First, is the relative and the bank in Virginia? What I can tell you is only about Virginia law.

A person can be charged criminally with writing a bad check, if they KNEW or should have known that they did not have money in the bank to cover the check.

However, if they wrote a check and someone put a stop on a check they deposited, they would NOT be criminally liable. The fact that soemone wrote them a check would make them believe that they had the money.

Now people can TRY to make a fuss about it. But such attempts would probably fail. The proof that they thought they had the money would defeat the charges in the end.

As the writer of the check you have every right to stop payment on the check. That is why there is a process for doing it and the bank did it. There is nothing wrong criminally in doing that.

Now, you say can any one come after you? Well, criminally NO. But could someone sue you CIVILLY (for the money)? I don't know there is not enough information. Was the check purely a GIFT? If it was a gift, then I don't think anyone can sue you over a gift.

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Answered on 5/25/10, 2:49 pm

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