rubber checks- what an idea! - Posted by Marty (MO)

Posted by Marty (MO) on July 09, 2005 at 12:27:46:

no cigarettes or bud lite tonight!

rubber checks- what an idea! - Posted by Marty (MO)

Posted by Marty (MO) on July 08, 2005 at 13:06:52:

Last night at our re club meeting, a guy who does sfh’s mentioned how he deals with bounced checks…

say a $500 check bounces, he doesn’t let it go through again, instead, he calls the bank it’s drawn on and asks if a check $400 will clear. If they say yes, he’ll ask if $450 will clear, until he finds out how much will clear. If this branch balks at giving more info, he’ll call another branch. If the most that will clear is $470, he’ll go to that bank and fill out a deposit slip and put $30 of his cash with the deposit slip and that’ll bring the account up to $500, so he then cashes the check. The guy who bounced the check to him is now bouncing checks all over town… He said it seems to straighten them out.

We don’t have issues with bounced checks (3 in the past 2 years), but if we had someone who wrote a couple to us- it might be worth it just to create this huge headache for them…

just thought it was an interesting idea and wanted to pass it along…

Re: rubber checks- what an idea! - Posted by Greg(PA)

Posted by Greg(PA) on July 12, 2005 at 13:13:59:

Yeah, I’ve heard that before and that’s great, but it only works if the check almost clears. I think in many cases you’ll find the balance to be about $23.67.

Re: rubber checks- what an idea! - Posted by Rich[FL]

Posted by Rich[FL] on July 11, 2005 at 11:43:26:

Here’s another solution that would be easier to implement. A friend of mine who owns a business in the local area has recently started using this process and it seems to be working well. There are other companies out there who offer this service besides the one I’m providing a link for. Hope this helps…


Re: rubber checks- idea!..been around for years - Posted by MarkH10

Posted by MarkH10 on July 09, 2005 at 12:19:22:

Additionally, the deposit receipt for $30 can now be collected as well, as it is proof your friend put the money in the checking account.

Lastly, if this problem persists, write the process into the contract!! How is that for open, honest dealings!??

“Clause #
If, in the case that the paying party has any check returned for insufficient funds, the parties agree that the recieving party may use the included Limited Power of Attorney to authorize him to inquire as to the balance in the checking account used to make payment, and, may at his/her sole discresion deposit sufficient sums to bring the account up to an amount which will allow the check to clear, and then cash the check.
Parites agree that if such occasion should occur the same fees as an insufficient check fee herein described in Clause X shall accrue, and that the depositted fund amount shall be repaid in cash (FRN’s) together with such fee. Initial here_____________. Be advised this will effectively drain such checking account!!” Then use an Addendum Limited Power of Attorney which is ONLY to allow you to find the existing balance in the account at any time.

If you have a couple with one of them prone to pull such stunts you now have notified both of them that it aint gonna work with the old man/woman who owns the land and MH note!! The couple, or more responsible partner, will be inclined to make sure the funds are there, or not to think they can write checks for lesser amounts while only 1 big check ‘bounces’.

I heard of this ole trick as a kid, and it IS rather effective, as now 4-5 different stores can proffer criminal charges, and you are not making any criminal complaint! Their ‘bounced check’ fees also go up to $25 each for 4-5 not just 1. This may seem mean, but it makes believers out of them. The beer and cigarette slush fund gets cut and the rent gets paid.

Re: rubber checks- what an idea! - Posted by Nathan

Posted by Nathan on July 09, 2005 at 11:29:59:

CUTE, imagine the guys face when he goes to an ATM to get 50 or 100 out only to find out he is flat broke!!!

Re: rubber checks- idea!..been around for years - Posted by Marty (MO)

Posted by Marty (MO) on July 09, 2005 at 12:26:02:

I had a couple of people already say, “duh…” to me- I just haven’t run into a big bad check issue, so I haven’t looked at it. It’s good to be prepared, though!
Your addendum looks great- thanks.