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In December 2006 my wife had three checks stolen from her while visiting family. All three checks were forged and two were paid through our bank. A stop payment was placed on the third and was returned to a small store where the person who stole the checks had cashed them using her real name. We were reimbursed at the time by the suspect's mother for the two checks that were processed. Now we have received a letter from a collection company wanting us to pay for the $100 check that was returned to the store due to the stop payment action. My question is this: Are we liable for the payment of the $100 and fees $38 when the check was stolen and forged? Also, it has been two years since the incident happened. We are concerned the matter will be filed on our credit report if not paid. I plan on responding to the claim to dispute it for the record.

Submitted: 260 days and 3 hours ago.
Category: Legal
Value: $15
Status: AWAITING CUSTOMER ACTION
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California

Answer

Hi XXXXXX,

You are not liable to the store for the check that was stopped because it was stolen. When a store accepts any check, it is their responsibility to make sure the check is likely to be honored. This is precisely why stores ask for identification before accepting checks. What routinely happens is the store will give up on collecting the money for the check, and sell the debt to a collection agency for a fraction of the value of the check. This does not mean that you owe the money. It just means that the collection agency is betting that they can intimidate you into believing that you owe the money, so you will pay them.

This incident should not be put on your credit report, and if it is, you have the right to contact any credit bureau listing to dispute the listing.

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Expert: Christina Fortunato, Esq.
Pos. Feedback: 99.7 %
Accepts: 
Answered: 3/8/2009

Attorney

Admitted NYS Bar, member ABA, NYSBA, NYCBA, QCBA, Licensed Real Estate Broker

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