My brother-in-law loans a 'friend' $500 a week or two ago.

Friend give Bro-in-law check for $500 last week.

Bro-in-law cashes check at check cashing store Friday.  

Check cashing store calls Bro-in-law today and advises that the $500 check bounced.  They want him to return the $500.

'Friend' has disappeared.  

Is Bro-in-law on the hook for the $500 or is check cashing store limited to going after 'friend?'

Any advice is greatly appreciated.

http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0832/Sections/0832.05.html


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http://myfloridalegal.com/pages.nsf/main/cc3baba4cfbc180685256cc9006a0911!opendocument


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B-I-L should probably read the paper work from the check cashing store.  It probably outlines the details of who is responsible for what, when...  In at least some locations, that bitey fee paid up front absolves you from any potential problems with the third party check - i.e. the check cashing store will go after the shithead...  the devil is in the details (fine print in paper work)...

I think in Florida both parties are responsible, so, give the check cashing place back their $ to be on the safe side.

This is why you don't cash checks (other than your payroll check- usually) at your bank or anywhere else.

Go to the issuing bank and cash it. No matter what they tell you, they have to cash a check issued from them- if the account in question has the funds in it-, whether you are an account holder or not. They can charge a small fee for the service is all they can do.

NEVER use a "check-cashing place".

My dad used to cash checks  for his tenants by the bucket loads.
He had a deal with the bank that they would cash any check he wanted.
He Was responsible for the money if the check bounced. Only made sense.

FYI

     $500 used to the threshold for the minimum amount of a bad check had to be for before the state would go after the check writer with felony charges. But I THINK they may have raised it.  Call State's Attorney's office and ask.

   Check cashing place is probably going to charge your brother a return check fee and so will his bank AND he still hasn't gotten his money. I think he's screwed!  

   Good lesson for all of us, don't loan money with out some kind of GOOD collateral in hand!  If they can't borrow money from a bank, then there's probably a reason for it!

Thanks all for the input.

Bro-in-Law says he filled out paperwork with the check cashing store some time ago, but doesn't have a copy of the paperwork and has no clue whether he previously agreed to hold the check cashing store harmless in the event of something like this.  He did pay a fee of $15 for cashing the check.  I don't know if that puts the risk of loss on the check cashing store or if that's just the cost of doing business with such places.  I guess he's going to find out one way or the other sooner or later.  

Bro-in-Law drove by 'friend's' house today and it has a for sale sign posted.  

This is yet another moment that causes me to question my faith in mankind.  

If the "friend" ownes the property >

The BIL should:

1) Make good on the bad check
2) Demand (in writing with statutory language) payment from the friend for all costs ($500 plus fees) - mail certified with return receipt and regular mail.
3) If the statutory period passes without payment, file an action in the local court for triple damages (that's $1,500).
4) Once court finds in favor of BIL - place lien against the property for sale (and file appropriate paper work in the county seat)... and then show up at the closing when it sells to collect.

If the "friend" was a renter, the BIL can do steps 1 thru 3 but when he gets to step #4, instead of liening the property, find a "debt colletor" and offer him 40% to collect...  

As an alternative, he might consider calling the "A-Team"!  I pitty the fool who doesn't cough up the ca$h!!!

County Sheriff's office may also be able to lend assistance (even if it isn't a felony) - give them a call...

"Friend" better fix it, bad check for 500 bucks is a 3rd degree felony, see: http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0800-0899/0832/Sections/0832.05.html