Ripped Off and Pissed Off (Long & Ranty)

[LifeCarnie]

Reading your post made me fustrated enough, so I can imagine your angst over this treatment.

Beyond the compensation, I would warn any other contractor friends that I have that this company does not pay its bills in a timely fashion. People would be hesitant to do any work for them in the future.

If this business that your boyfriend has is licensed and he has a tax ID, I believe you also qualify as a creditor, so you could file a negative credit report against them, for the overdue amount.

[Primer]

OK, I have a question. Even though I worked at a bank in the past, I've never heard of a signature guarantee stamp. What is it?? It sounds like it would guarantee the signature of the check writer on the check, but then why would it be gotten at the bank of the recipient?

[Nekojin]

Coming in late, but I'll add my $0.02, adjusted for inflation...

IANAL, and all that.

Unless the contract clearly states that they can reduce payment based on quality, they have no real recourse to unilaterally refuse to pay. They can sue for reimbursement if they can show that the work is below industry-accepted standards, but they cannot do what's being done here.

And, as was pointed out before, if they remitted payment, that is tacit agreement that the work is done.

[d962831]

take it to court. I can't really offer an advice that hasn't already been given, but if I were you I'd defianantly add some more money to any thing you want to sue them for, in order to pay for court costs, etc.

[Byronthebanker]

To Primer RE: Signature Guarantee

Take for instance I get a check made out to my business:

I can, deposit it in my bank, where they have the documents on file as to who is allowed to sign on the business accounts, and other copies of my business documents as required.

If I want to present the check to the maker's bank, they don't have all of that documentation of who the signors are, so that other bank won't do anything with the check (they shouldn't ever cash a check made payable to a business, but they could exchange it for an "official check" or "cashier's check.") Note, an "official check" or "cashier's check" is the same thing - it is a check that is written on the general account of the bank, which greatly lowers your risk in holding a check from a bank customer.

The signature guarantee obtained from my bank is my bank's guarantee that I am actually a signor on the business' account. In our bank it is a rubber stamp that says something to the effect, "Signature guaranteed by: _______, bank officer, then the full legal name of the bank"

[Eric the Grey]

Thanks, myswtghst, I forgot to mention that - there was a written contract. They agreed to the terms and signed.

In that case, you hold all the cards here. You have proof that they are obliged to pay you (or rather, your BF).

Did he really stop pay on the checks? or just say that? I'd still take them to the bank they are drawn on / deposit them at your bank (but don't spend the money until it clears). If you deposit them, and they come back marked "stop pay" or "non-sufficient funds" or "account closed" - then you have your first piece of evidence for a possible court case. P.S. - "account closed: checks are the easiest to prosecute through the state's attorney's office. "NSF" checks are fairly easy to prosecute also, but "Stop Pay" checks would generally be a civil matter you'd have to sue for.

Also, as to the post dating - bank law is mostly state law, mostly adopted to the Uniform Commercial Code - anyway, in many states, the date is a matter of convenience to the writer - it has no bearing on negotiability. Long story short - a check is often payable upon presentment, and post dated checks are even in some cases specifically illegal.

Personally, if it's made out in the business name, I'd get it signature guaranteed at your bank, then that it to the bank it's written from and ask them to exchange it for an official check. If the other bank is too far away, then I'd deposit them in your bank account.

Be careful and make certain you know the laws about post-dated checks. In Colorado, for example, post-dating a check is legal. They are look at as a debt in that case. I've successfully fought off an old landlord who tried to evict me because he deposited my check early. It bounced, of course because it was deposited before my payday, and they tried to evict me and force me to pay their bank charges. They failed.

Anyway, in Colorado, purposely writing a check you know won't clear can leave you liable for up to 10 times the amount of the check, so depositing it and seeing if they will clear is not really a bad idea. Make certain you know how the laws work though. Like Byronthebanker said, at the very least, it proves they had no intention of paying you, regardless.

Document, document, document, and make certain that ALL future correspondence goes through certified mail for even more tracking.

Seek advice from a Lawyer just to be on the safe side and find out exactly what you can and cannot do. You may even want to go for a real court rather than small claims, depending on how much it ends up costing you. Make certain you get everything back, including your time.

Best of luck.


Eric the Grey