We had a tenant move out of ourrental home last July. We reimbursed him for the last months rent. He claimed he lost the check, so two weeks later we issued a new check to him for nearly $5,000 (marked replacement check on memo).

Yesterday, 9 1/2 months later, our ex-tenant mysteriously 'found' the lost check and cashed it (even though he cashed the replacement). Chase will not reimburse it, as they say it is not "fraud" and we should have stopped payment on the original check.

What is the recourse in a situation like this? I though checks were stale after 6 months, but Chase still cashed the check. Any advice would be greatly appreciated.

From Chase Deposit Account Agreement:

. Incomplete, future-dated, conditional or stale-dated checks

You agree not to write a check that’s incomplete or tries to limit the time or method of payment with a condition, such as “Void after 180 days” or “Valid only for $1,000 or less.” We have no duty to discover, observe or comply with such checks. If we pay a conditional check, the conditions do not apply to us. We may choose to pay or not to pay a stale-dated check (dated more than six months before it is presented), regardless of how old it is. If we pay it, you will be responsible for the check. We may pay any future-dated check submitted for payment.

Unfortunately, you're going to have trouble here.

While there is an "unwritten rule" of checks expiring, they actually don't. It is up to the bank whether or not to accept a check -- they simply need to decide that it is still valid "in good faith". Even if a check has "expires after 90 days" actually ON it, the bank can still decide to cash it and not be faulted -- because the "Uniform Commercial Code" that banks follow doesn't actually address expiration dates!

In other words, there is no law that requires banks to not accept checks after a certain period.

That being said, they still owe you that money, of course. So, I would write them a letter explaining that they now owe you the $5,000 back and have them get a Cashier's Check for you for that amount. Give them a deadline.

If you don't get it, then I think you'll have to sue them. Hopefully, the amount is under your Small Claims limit for your state?

And, of course, "hindsight is 20/20" and you already know this, but you really should have voided the check -- especially for that amount! :(

- John...

(That was a same-time post as LisaFL there. I didn't see hers until after mine was posted. I agree with her, just to be clear.)

- John...

You messed up, we all have at one time or another. Just a shame it was for a large amount.

Now just have to go thru the hassle of collecting.

Hard part is going to find the ex tenant and get them in court.

Should be easy for you to win and get a judgement. Judge is not going to look kindly on the ex tenant.

Do you have their request for a new check in writing? Either text message or email?

That might help you.

At a minimum, I would call the police or the DA.

Thanks to all who responded with advice. We told our ex-tenant that we were going to have a file a police report for fraud, and he sent us the money (quick pay) this morning.

Thanks for sharing your story. I know I learned something.

I was told that a check is considered 'stale" after 6 months, but it is up to the bank whether they will cash it or not, after that time. Chase rep. on the phone tried to tell me that checks have no 'expiration' date.

This is what I found on the internet.

The Uniform Commercial Code, which is a standard set of business laws that governs financial contracts and has been adopted by most states, says that a bank does not have to accept a check more than 6 months old. However, a bank can choose to go ahead and cash that check, if it feels the check is being presented in "good faith."

Never trust a tenant with that amount of $ at hand.

Always put a stop payment on a check even if it was $30

WELL … Am I ever glad to read this post.

I have three checks from my little town that the town refuses to honor or do anything with. I had bought a business license $25 on three separate occasions and about a month or so after getting each license the city revoked the license. They did write me a check for each license but since I was off playing army I did not get them cashed. When I got back I noticed the “Void after 90 days” printed on the checks. I thought I couldn’t cash them so took the checks to the city to have the checks reissued. They wouldn’t reissue them. Said I waited too long and I was out of luck.

So I have been waiting for the three years to expire so they have to turn the money in to the state as lost or found money or whatever it is called. In MO, and I am sure other states as well, a city can’t make money off a citizen the way they were trying. City has to turn the money into the state and the state tries to find the owner (me).

Now I am going to take the checks (when I find them again) to the bank and see what happens. If that fails then I will contact the state and ask for my money. It’s not a big amount but if the city was not going to let me have a license then they should not have issued and charged me the last two times I ask for a business license. And the world turns.

I just saw this. Until I saw your later post about the conclusion, I was going to suggest that you politely contact them and point out that they'd already gotten the $ back 9 months ago. Then see what they said.

I've had a couple of tenants who were so ditzy that they would have clean forgotten that they'd already been paid, and also some who would have done the same as they laughed their way to the bank. But I now know from your experience to always cancel the "lost" check.