Contractor Problem - warning!
 

It is with a heavy heart that one of our local contractors has followed the path of others. Recently we had Duane at Color Splash Painting (also a handyman) over to do an estimate for trim work. He has done other jobs for us, all reasonably on time and had been given deposits before. So we figured not an issue.

This time, he decided to cash this check at a check cashing facility rather than a bank. Which means a stop payment does not work (learned a new one). We wrote a check for $1000 as a deposit for about $3500 of work. I was supposed to get a call the next day - didn't. Was supposed to meet him to select and pay for the trim - didn't hear a word. Several text messages unanswered, several voice mails not returned.

So here we sit I had to pay the check cashing company while he has my $1000. even had a friend call him -he answered - said he would call me - never did.

I now have to try several avenues to get my funds back, a lot of work to do ahead and still have the trim work to be done.

I do not recommend using this vendor. You could be next .

If he didn't do any work, go the Wildwood Police Department and file a complaint. If he did any work you're out of luck. We had the same thing happen with a landscaper. As long as no work was done, you can go after him. If you have questions, contact me.

Can someone please explain the purpose for a deposit when no work has been done? I would never give a deposit to a contractor. But, if for some reason I did, I would insist on the contractor accepting a credit card.

Confused why did you need to pay the Check Cashing Company?

He didn't pay the check cashing company.

The painter CASHED the check at a check cashing company, rather than deposit it in his business account...

I think he had to pay whatever charge the check cashing company charges to pay out the $ 1000. No idea why they would pay that also.

No, the Check Cashing Company was the one who technically cashed the check...

They paid out funds to the painter.

Unfortunately, he has no recourse against the check cashing company...

A bit confusing. Re: check cashing service. I would call your bank. There is a time period that you must stop payment before. I expect the contractor went to a check cashing service for which HE PAYS a significant fee because he owes people money and their is a lien on his bank account.

My priority would be to get your money back. If, you hire someone else and he shows up to do the work, it will of course get messy.

We used James Rockholt of Rockholt Painting 603 391-6658 price was good, work was GREAT. They painted our entire exterior. The speed, the quality, the painting TEAM wow it was impressive.

I think that once a check has been cashed by the payee through a third party, it is too late to issue a stop payment order. A stop payment order only works when the payee has not yet endorsed the check and received his money. There is no time limit, and it doesn't matter whether the third party is a check cashing service or not. That is why many contractors will immediately go to a bank and cash a check. But, I don't understand why the OP would owe anything to the check cashing service. It was the contractor's choice to use the check cashing service.

I had a similar experience years ago. I stopped payment on a check in time (before it was cashed). However the person took it to a check cashing store and cashed it.. When the stopped/ canceled check was presented to my bank, obviously it wasn't honored. However, the check cashing company was very smart. The stop on the check was only good for 180 days (per Wells Fargo rules). So the check cashing company redeposited the check at 181 days and it went through. Even if you stop a check in time, the "stop" may not be forever.

if a check cashing company cashes the check and you stop payment on that check it doesn't apply - you then owe the check cashing company the money.

actually that's incorrect. you don't have to stop payment before he's endorsed it - case in point he deposits the money in his account - you can still stop payment up to 90 days from the date of writing the check. In my case it was stopped within 48 hours.

In either case there are time limits as another poster pointed out the stop is 'gone' after 180 days which is correct.

However I didn't post this for couseling on stop payments, collecting the money or anything it was to report a bad contractor that shouldn't be used.

My bank has no 90 day rule. If he deposited the money into his account, he had to endorse it, so the funds could be transferred from your account into his account. This is the same as cashing the check.

"When Can You Stop Payment On A Check?
Generally speaking, stopping payment on a check is possible at any time prior to the check being cashed. Once the check has been cashed by its recipient, the person who wrote or authorized the check will not be able to make a stop payment with their bank."

I was just clarifying the rules for stopping payment on a check, made by another poster.

If the job uses costly materials or special order to buy, some will ask for 1/2 down payments to purchase them.

As far as paying with a credit card, I've notice some will add the retail acceptance fee to the price of the job.

Any reputable contractor should accept credit card payments, even if he charges the small bank fee to the customer. For materials, the customer can purchase expensive materials directly and have them delivered to the project. But, some contractors require a cash or check deposit before they perform any work. If that is the case, I would not do business with them.