Bounced Checks: How to Handle Unpaid Host Fees and Protect Your Budget"

[Christa]

Do we have any recourse at all? My host gave all the products out for her f/r and now 2 checks were returned and I am out $175 with the $10 my bank charges for each check. I have called the # on the check and its been disconnected. I talked to the host and got the cell#. I left 2 messages and no call back. This messed up my budget and it p*sses me off. I closed the show on my PC visa because it was a f/r and there were lots of checks.

Do you always wait until the checks clear til you submit?

 

[AlowayFamily]

I have several fundraisers going in June and I am having all the checks made out to the host and they will write me one check for the order. I know this doesn't help your situation now, but hopefully in the future it will solve the problem.

If you have time to wait for the checks to clear, you may want to do that in the future.

 

[Chef Kearns]

If you cannot get ahold of the person by phone I would go to their home. Explain the situation in person and if you do not get payment that day then I would go from there. You can file with small claims court. There was another discussion about this a little while ago. She was able to get the person to pay for the court costs and the costs incurred from filing in small claims.

I do not always wait for the checks to clear, however, I strongly encourage the use of debit or credit cards especially for outside orders.

Good luck! I hope it all works out for you. Look up that thread.

 

[Sk8Mom209]

I to would go to the customers home. I don't know that I would have customers write checks to the host, though. It difficult and $175 check bounces, but what if it was the entire show :O. Especially a large f/r show. I can much easier handle the $175, and $1000.

 

[mandak]

I have had one check bounce since starting PC. It was written from the same bank I bank at and they did not charge me a fee. I checked back a few days later when I had another deposit to make and they were able to cash it then. If the bank the check is written from is one nearby you, I would go to it and try to cash the check there. They can tell you, yes they can cash it or no there is not enough money without charging you another fee. That won't solve your bank fee but it would at least get you the amount of the check.

 

[jwpamp]

In Indiana, you can legally file a small claim for 3 times the amount of the check plus expenses. I would try a certified letter first. DO NOT release the check until it is paid for IN CASH! This is your only proof and you will need it to sue.

By the way, I always have the guests write checks out to the host or organization and then have the host write me one big check. My bank always verifies funds for me.

The guest would probably think twice about bouncing a check to a friend, and not blink an eye about doing it to someone they don't know!

 

[Chef Michelle D]

I'm sorry that happened to you, I have not had a check bounce on me yet. But I have had a credit card decline. I don't wait for al the check to clear but I do know PC does not like it if the order is on one check or credit card. Good Luck.

 

[AlowayFamily]

Isn't that how we submit the order, either through our PC credit card or debit card? That would make it come from one source, right?

 

[Chef Kearns]

Isn't that how we submit the order, either through our PC credit card or debit card? That would make it come from one source, right?

Yes. PC doesn't want one guest/host payment by credit or debit card. If we have a delinquent account when they try to withdraw the money for the show they may reject further payments from that source. You would then have to submit your shows by money order only. Check that in the Recipe for Success to be certain.

 

[AlowayFamily]

Okay, the credit card payment from the host makes sense, but if they write us a check, PC won't know the whole order payment came from one source, so it would be okay to get a check from the host for the entire show. So my hosts can collect checks and make one check to me, or write CC#'s for guests who want to pay by card. Would that work?

 

[marionwilliams]

When I hosted parties before coming a consultant. I would only deposit cash to my account. I would take their check to their bank and cash it. I only had one check that was not good and the "bank" told me to come back the next day because they would be depositing their paycheck the next day. So, it was cool. I am not sure that a bank should tell people that kind of information but they did.

 

[Chef Kearns]

Yes, that would work Nancy. I have my outside orders write their checks to the host and she pays me with her debit or credit card. I do not take a check from her for the final payment. Mainly because I close my parties over the phone, but also because I do not get a penalty if their debit card doesn't go through.

 

[cmdtrgd]

By the way, I always have the guests write checks out to the host or organization and then have the host write me one big check. My bank always verifies funds for me.

The guest would probably think twice about bouncing a check to a friend, and not blink an eye about doing it to someone they don't know!

How do you get the bank to verify funds without a check bouncing fee?

 

[Chef Kearns]

Show the bank the check and ask if the funds are available. I know people who have done it over the phone. You just have to give the the info off of the check. They won't tell you the balance or anything, but they will tell you if there is enough money in there to cover the check amount.

 

[marionwilliams]

if you have a check to you. You take it to their bank and tell the cashier you want to cash it. The cashier will pull their account up and if there is enough money they cash it. If there's not enough funds they just tell you "sorry" try again in a few days and there's no charge.

 

[schel]

When I hosted parties before coming a consultant. I would only deposit cash to my account. I would take their check to their bank and cash it. I only had one check that was not good and the "bank" told me to come back the next day because they would be depositing their paycheck the next day. So, it was cool. I am not sure that a bank should tell people that kind of information but they did.

I have been kind of afraid of this in the future for myself. Not a bad idea, to cash the check at their bank and then deposit cash in my own. Do they charge you a fee to cash at their bank if you do not have an account there?
Schel

 

[Chef Kearns]

No they do not charge you a fee to cash the check at their bank.

 

[sailortena]

Actually, several banks do charge check-cashing fees if you cash a check at a bank where you don't have an account. It depends on the bank's policies.

 

[Christa]

I went to her bank and the funds weren't there! Its not like its $20-she owes me $174!

 

[mary k]

I love the idea of getting one check from the hostess. My husband throws a fit every time I take checks. The bank here will not do this for us so thats not a option.

 

[pampered1224]

The banks around here...have a tendancy to charge a percentage of the amount of the check to cash it if you do not have an account with them. So I just have to take my chances. I too am slightly gung ho when it comes to turning in a show so I don't wait like I should. I have had several checks bounce over the years. Luckily only one became a major pain. It was for an entire show over $1200. The host had the show then got the stuff, delivered it all and then took off because she had to "get away" from her husband. She cleaned out her account taking the show money with her before the check cleared. Because of my banks three tries policy the order beat the clearing of the check. It took me almost three years to resolve that one.
1) I always have checks made out to me, I could change this and let the host get "stuck" or
2) I just grin and bear it.
It's all a 50, 50 proposition. Most people would not concider screwing you up but...

 

[Chozengirl]

O h My Goodness, so sorry that this happened.
I just submitted my cousin's fundraiser and 4 outside orders still haven't paid me.
I am going to call again tomorrow.
That is $147. I hope they pay!!!

 

[Chozengirl]

oh, I forgot to mention, I sent the shipment to thier place of business too.
They work for the county, so if anything, I will call and harrass.
Good luck w/ your situation.

 

[tmjenkins29]

I do. Now I have everything shipped to my house. I do not play anymore. I have ordered things for people and they said they would pay me in a week. I still have them. It is the one part of this I hate. I don't understand why people would buy things they cant afford.

 

[redd3708]

Um, okay...maybe I am completely "dense"...but I don't think I understand where everyone is coming from. So, if I deposit a check and it bounces...I have to pay a fee? Wouldn't the check-holder be charged instead? It shouldn't be my fault that "THEY" didn't have the money.

Am I understanding this correctly? I'm only in SS2.

 

[Ginger428]

I have ALL checks made out to me. I go to my bank where I have a Checking & Savings & deposit the checks in the savings. Fisrt of all on the whole we are not putting in THOUSANDS of money & its not staying there long either. If your bank has a problem with that tell them you are switching banks. Either they wont care or they will cater to your needs. You are there for THEM!

 

[soonerchef]

Um, okay...maybe I am completely "dense"...but I don't think I understand where everyone is coming from. So, if I deposit a check and it bounces...I have to pay a fee? Wouldn't the check-holder be charged instead? It shouldn't be my fault that "THEY" didn't have the money.

Am I understanding this correctly? I'm only in SS2.

This is exactly why you see the signs at other merchants that say "$25 charge for bounced checks"...the bank not only charges the check writer but also where the check was deposited, it stinks but, that's why I charge $30 to my customers who bounce checks.

 

[cmdtrgd]

Andrea - how do you go about charging your customers that bounce checks? Is there legal wording on the order form or something?

 

[AlowayFamily]

I do. Now I have everything shipped to my house. I do not play anymore. I have ordered things for people and they said they would pay me in a week. I still have them. It is the one part of this I hate. I don't understand why people would buy things they cant afford.

How does that work to have everything shipped to you? Does that make a lot of extra work for you to have to distribute the merchandise? I have been thinking about doing this, but I work full-time during the week, and my shows can be 30 minutes to an hour from me. I wonder if this would be worth the extra effort on my part. What is the benefit to having the order shipped to you?

 

[Paige Dixon]

No, it probaly isn't worth the extra effort if you work full time and have shows so far away. Firstly, I always tell the host not to give any unpaid products until she collects the money. As far as bounced checks, I've had the most luck eating the fee and waiting until she has funds to cash it at her bank.
My Executive Director will call the customer and tell her she needs either the money or the products or she will call the police. I've found out that the Distict Attorney's office can help you. I think a threat to turn in their check to the DA's office sounds official and scary.

 

[redd3708]

This is exactly why you see the signs at other merchants that say "$25 charge for bounced checks"...the bank not only charges the check writer but also where the check was deposited, it stinks but, that's why I charge $30 to my customers who bounce checks.

Yeah, how do you go about doing that???

 

[soonerchef]

When they bounce the check I tell them that they owe me for the original plus my $30 bounced check fee. I have had one person bounce a check for 2 mini serving spatulas, $13 total...she ended up paying me $43 and another $25 to her bank. Also, if you let people know at the beginning of your show that you accept checks and there is a $X amount charge for bounced checks then they know before hand. I think that in this day and age that it is uncommon to not have to pay a merchant for a bounced check, anyone who does bounce a check should already be assuming they will be charged an extra amount.

 

[cat]

Just had my first bounced check in 2 years of being a consultant. What a bummer. It was for $120. And this woman booked a catalog show too! Guess I gotta go hunt her down. And my bank charged me a $10 fee. Hopefully she pays up AND still does her catalog show!

 

[Chef Diane]

Do we have any recourse at all? My host gave all the products out for her f/r and now 2 checks were returned and I am out $175 with the $10 my bank charges for each check. I have called the # on the check and its been disconnected. I talked to the host and got the cell#. I left 2 messages and no call back. This messed up my budget and it p*sses me off. I closed the show on my PC visa because it was a f/r and there were lots of checks.

Do you always wait until the checks clear til you submit?

Yes, I always wait for cleared check before submitting a show. If its a cooking show I deposit them the next day, by the time the show closes I know something. Be thankful it was only $10 a check, we get charge $29 a check. Another suggestion: have guests make checks out to the host and have her write you 1 check. Guests are less likely to bounce a check on a friend.

 

[Sooner PC]

I guess I am too trusting. I have had 1 bounced check for $25 and I managed to get her order before it was delivered to the customer. She promised to pay but never did - so I have the product. She was going to sign up to sell PC again too - and PC told her no. She has been barred from selling forever. I guess that should tell me what kind of person she is.

I always take checks and will even have my hostess mail them to me. One day it might bite me in the butt - but for now - it is working for me.

 

[supergirljennie]

I had my first bounced check the other day. It was for an outside order, and she had already received her things before I knew the check had bounced. Luckily she sent me a money order and I had enough in my account to cover it. I hate messing with checks though... Why doesn't everyone use debit/credit cards like I do?!

 

[pampchefrhondab]

Wow, I had my first bounced check like some of you too, after two years in the business.

I got really lucky with this one. The host was late getting back to me w/some other orders so I didn't send the show in yet. I emailed the customer (she was a past host). I told her I needed a money order to cover the check plus my $15 bank fee or a credit card. She gave me a credit card and appologized.

This does teach me a lesson to cash the checks right away and not send the show in for a few days (I just hate that when we have incentives though). I always tell the hosts and customers the orders will arrive in 2-3 weeks so this gives me some time. We are so close to H.O. we get the roders really fast.

I just wish our incentives went by the date of the show not by the date of the show and when we get them sent in by. H.O. doesn't want checks written out to them so they don't have to deal w/bad checks. This is something we have to be careful about and they should give us a 2 week window to complete our shows. My director said it never used to be that way. I think we should all start complaining to H.O. about it. I noticed they have extended some of the incentives by 5 days, but that still isn't enough time in my opinion.

I have done a few fundraisers. I have had the checks make out to me, but I have all of the products shipped to my house so I could return them if needed. That is the only way I will do a fundraiser is by having it shipped to me.

One last note, my bank today was telling another customer (who sells on Ebay) to keep a copy of the check and contact the bank of the customer to find out if the check has cleared (this would be quicker then waiting for a notice from our bank). I didn't realize a bank would give you that info., but that's the advice they were giving. Not a bad idea if you have a large check. It should only take a couple of days to reach the customers bank.