Deposited "bad" payroll check and took out cash.. Should I close bank (BofA) account?

Question

Long story short my work has failed to pay me. Checks keep bouncing, and it looked like I was going to be stuck receiving NO pay at all after working full-time for them. They're BROKE and they've issued bad checks to practically everybody, and they've got angry clients pounding on their door.

Well, I quit for obvious reasons, and after a TON of trouble I managed to get 2 temporary checks.

Anyway, I opened a Bank of America account. Came in daily @9AM to see if the funds for the payroll checks were available. Yesterday, the teller told me that the funds were available and posted. So she took my checks. I'm not exactly sure what she did, but after she signed it/ran it through a round machine thingy/etc she said the funds were now applied to my account and that I could use it. I saw the totals in my balance.

I haven't been faring too well after 1.5 months of no income, so I took all the cash out of my account ASAP. Well, 4 hours later, my ex-company suddenly calls me and shouts at me for depositing both checks, and they tell me that they can only cover one, but they're going to bounce/stop payment on the bigger one.

I already took the cash out... I feel like I'm screwed, but I'm also angry because these were LATE payroll checks and it isn't my business if they don't have enough money to cover all the BAD paychecks they irresponsibly gave. I was advised by someone to close my account, but I feel like I'll get in even more trouble.

What should I do/what will happen to me?

Answer 1

I wouldn't close the account. It would be a red flag for fraud, and you would need to prove that you were scammed and not part of the scam. Yes, that will mess up your credit, but straighten that out when you get a job that pays.



Is there a state labor board you can call? What they are doing is illegal, but if they really are broke all that will end up as is bankruptcy. Also, check out the rules for unemployment in your area. There is a good chance you can't get anything, but if you have nothing better to do for half a day, go there and see if you can get unemployment for time you were working but not paid. Also, you are going to want to file a proof of claim in your employer's bankruptcy so you can get a little of your money from them. I'm not a lawyer or bankruptcy expert, but I think that the first people paid are secured creditors, the second paid are employees, and third will be all the vendors pounding on the door--so get your claim in and get part of what you are owed.

Answer 2

The problem with the checks is the company's not yours. You may still be liable for the money you took out from the BoA account so don't close it. Speak with the bank.

Answer 3

The bank will refuse to close your account if it has a deficit balance. The bank will keep the account open and go after you to get the money back. You will have to go after your employer to get your money from them.