Is it legal for a car dealership to charge a sales person for a customer's bounced check?

Question

My mother is an assistant for the top-selling sales person at a local car dealership. It is a reputable dealership, and is one of the largest in the area. A customer of theirs had written a $1500 check (i'm assuming down payment). They were financed and were allowed to take the vehicle home. The check ended up being returned for non-sufficient funds, and the dealership took it out of the salespersons pay. They recieved a memo several months ago stating such penalties, but is this legal? What kind of action should be taken? I would appreciate any and all comments. Thank you.

Answer 1

its legal, when I sold cars we had a check protection company that would cover checks if they bounced.  I had to pay a percentage of the total check amount as a fee.  Is was good insurance because I caught a couple rubber ones before too.  Tell your mother about companies that do this, its good cheap insurance, I'd rather spend $20 protecting a check that spend $1,500 because of a roach.

Answer 2

The only way they could do that is if the salesperson went against company policy limiting personal checks to a certain amount, and accepted a check higher.  At my dealership, although, it's never gone that far, i will be charged back a percentage of the lost revenue.  Essentially commission received that wasn't due.  Unless i received a flat commission, then no charge back.

Answer 3

Why do people ask questions like this on here when the only correct information they're going to receive is from a local attorney?  You'll get all kinds of answers, but nobody really knows unless they're from the same place you are and work in the legal profession.

Answer 4

If the sales person authorized the check, then it would fall on them. the thing for them to do would be to prosecute the buyer who wrote the check, I think above 500.00 is a felony.