how can I dispute a bad check and the company wants there money back?

UPDATED: Oct 1, 2022

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how can I dispute a bad check and the company wants there money back?

I receive a call from Speedy Cash for a loan in which I was approved for. However, my credit score was low and they deposited some funds into my account and that I would have to pay back. They put a total of 3 checks into my account and I returned 1 of them. I then found out that the checks were fraudulent by the bank. the bank told me that they were sending the fraudulent checks back. Since this, the are emailing me and claiming they will do a lawsuit against me. How can I handle this situation?

Asked on March 5, 2018 under Criminal Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If we understand your question, you received three bad checks, then wrote a check for or otherwise paid back part of the money (one of the three checks). If that is the case, you fell for a common scam: they sent you bad checks specifically to get money from you. If that is what happened, then you have to repay the money to the bank: you are responsible for all amounts taken out of or paid from your account, even if the only reason you paid it out was that someone else had written your fraudulent checks. If you don't repay the funds  you paid out from your account, the bank can sue you for the money--and will win. You could try suing the people who sent you the fraudulent checks to recover any losses from them, but in these kinds of scams, it is very hard to get the money back--the scammers disappear, close businesses, wipe out their accounts, etc. In the future, NEVER write checks against checks someone else sent you until a few weeks have gone by and you know for a fact the money is good.
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