Question: returned check from a parent for a fundraiser

What do we do about a parent who took all the money people paid her for their merchandise for our fundraiser? The parent gave us a check to cover the whole order but the check was returned for insufficient funds. We are going to give the merchandise to the people who ordered but how do we get the money from the parent who took their money.

Asked by mommyhawk

Answers:

Community Advice

jeciwall28 writes:
If she covered the entire order with her personal check, you should not release the merchandise to anyone until she has paid for the order. I would send her a letter stating this, along with a copy of the returned check, and request payment in cash or money order before you can release the merchandise. It's ashame that she did that knowing her check would bounce. I'm afraid if you release the merchandise to the people who originally ordered and paid for it, you will not get your money from the parent who wrote the bad check. Are you willing to take a loss?

Community Advice

firstnoel writes:
You can state that the check writer is now liable for the returned check and bank fee. In California we can even file in Small Claims Court and cite our CA Civil Code 1719, then request three times the amount of the check, if necessary or depends on how out association wishes to take it as a loss

Advice from PTO Today

Craig writes:
It's unfortunate, but bad checks do occur. If possible, it's best to handle this quietly. Sometimes people just make a mistake. I'm guessing you've probably already done this, but step one is to talk to the person who wrote the bad check, inform her of the problem, and ask for a replacement. Most of the time that's all you need to do. But if that doesn't work, the next step is to send a certified letter detailing the amount owed, check number, date, and bank on which the check was drawn. State the amount due, including additional fees, and give a set time for the person to make restitution (10 days is standard). You might also site your state's law against passing bad checks. Make sure you keep a copy of the letter in case you do have to go to the step of making a court filing. For more detailed information, read the article Dealing With Bad Checks. Good luck.