Cashed check bounces? or cancelled?

Question

if i were to cash a check how long should i wait before spending the money? If the check bounces would i have to pay the money back to the bank with a fine? Also, if the payer were to cancel the check, what would happen?

Answer 1

If the check bounces, you would have to repay the money plus fees to the bank.

Do you know the person writing this check?  And is it drawn on  a local bank?  There are lots of check scams out there.  Out of state checks might be on a real account and initially go thru but a month later come bouncing back because its a counterfeit check.

Check this:  http://www.ftc.gov/bcp/edu/pubs/consumer...

Answer 2

Do you mean if you deposit the check how long should you wait to spend the money?  If that was your question, it all depends on your bank and where the check is from.  Typically, it takes a local check atleast 2 business days to clear.  A non local check can take atleast 5 business days.  But, depending on the banks, and whether they use Check 21 or not, the checks could clear sooner.  If the check is from a scam, and is not a real check, it could take months for it to come back as fraudulent because the scammers sometimes put fake routing numbers on them and the check can float around in fedline.  If you recieve a check and do not know the person who sent it to you, as your bank to send it for collection for you.  This will save you from losing any money.

If the check bounces and you have spent the money, you will be responsible for paying that money, plus any overdraft fees, back to the bank.  If it is a large amount, say over $1000.00, your bank may work with you by giving you a loan to pay off the overdraft.  

If the payer cancels the check by putting a stop payment on the check, it will be returned unpaid to your bank, just like a bounced check and you would still be responsible for the money.