Ten Day Hold on Checks - Suspicious

[Bekeart]

Yesterday met with roofer (Nail Driver), owner of XYZ Roofing to get quote for a job.

While his offer seems reasonable, I am suspicious of his possible business practices.

He wants checks made to "Nail Driver" instead of "XYZ Roofing".

He claims that his bank puts a "Ten Day Hold" on any XYZ check he deposits.

With the quick electronic transfers currently in use, TEN DAYS is "Pony Express with a Lame Mule" speed.

I am suspicious that his bank has had some problems with him in the past.

IF he is hired for the work, the check will be to "XYZ Roofing" and he can meet me at my bank and get it cashed.

Looking for advice and comments ....

Bekeart

 

[Telecaster]

Yeah, find someone else.

 

[bruce5781]

Trying to avoid income taxes.

Sent from my SM-G781U1 using Tapatalk

 

[CAJUNLAWYER]

I'd find someone else.....

 

[Dave.357]

Run and do not look back.

 

[MaricopaKid]

I only deal with crooks when I know them.

 

[WR Moore]

Isn't that Caj's line?

 

[Heinz]

Walk Away from that one. It not that God fails to warn us, it is we don't pay much attention until it bites our donkey

 

[ColbyBruce]

The credit union I use holds checks and money orders (other than USPS issue) for ten business days. I tell folks this when I sell an item. I still get sent other money orders and personal checks. As soon as the sender notices the funds have been dispersed they are insisting on a shipment. My CU might be overly cautious but I appreciate that as I worked hard for that money I have deposited there.

I agree your roofer sounds fishy and I would throw him back.

 

[MDF4]

It is not all that unusual for a bank to put a 7-10 day hold on a check especially if the payee has a history of depositing NSF checks. I deal with contractors everyday. Let it be sufficient to say, there are trust worthy contractors and the shady. My policy on new accounts; anything over 5k accounting will file a preliminary notice on the jobsite and if things go south, we will file a stop notice which basically shuts down the entire job. All trades have to pull off until the debt is satisfied.
Granted, this is to the extreme of your situation but based on what you posted I would recommend kicking this guy to the curb and get a reputable contractor as I can see all kinds of loopholes that could come back to bite you.

 

[Paul in Nevada]

Pay him in cash and get a receipt. He probably has trouble with the IRS or an ex wife.

 

[BSA1]

We completed a major addition and remodeling of our house last year which included a new roof. All I can add to the conversation is don’t fall for the siren song of low bid. A reputable company will provide references and no fake company names.

 

[NYlakesider]

Of course the longer the check is held the longer the bank/CU gets the "float" Add up the amount of money that they hold its a nice simple profit for that institution.

A few years ago I was transferring money from one of my checking accounts to another of my checking accounts in the same banking system and they told me that 10 day thing. Asked for the manager, a couple minuets talk and his signature went on and the money was available.

 

[dmn57]

I certainly won't place all members of a given trade in the 'shady' category, but I've known more than a few roofers over the years that certainly qualify. The worst was a guy that accepted a $40k deposit for a roof on a local car dealership, then went to a rival dealership, purchased a new truck and skipped town, abandoning both business and family. This guy also lived fairly high on the hog while underpaying his employees, a true scumbag. This of course doesn't mean your XYZ guy isn't legit, but there are signs. Beware.

 

[Telecaster]

I’ve never had a check held more than three days.

Whoever you use, make sure they get a roofing permit if your county requires one, and a written contract of what they will and won't do.

 

[Rowlette]

From a person who had owned a Roofing Company for 30 + years, I would say, so long. A reputable contractor, company has enough funds in their bank account to handle almost any situation prior to yours. But and I do mean But, they are a lot of untrustworthy people out there on both sides of the fence.
I wouldn't start a job, until the funds have cleared, once I start a job, all liabilities fall on me, so I would require 10% on signed contract, 20% on day of tear-off, 30% day of delivery of materials, 10% after dry in inspection rest on final inspection. Which in turn I give give a copy of the permit and release of material lien on the property.

Laughing at Oneself and with Others is good for the Soul

 

[handejector]

IF he is hired for the work, the check will be to "XYZ Roofing" and he can meet me at my bank and get it cashed.

Looking for advice and comments ....

Bekeart

Check with your bank- most banks will NOT cash a check made out to a company. The "company" is not standing before them.

 

[CAJUNLAWYER]

Allow me to explain a bit further. Banks are required to give you access to funds deposited within 24 hours or "the next day" however it takes more time than that for the check to clear-usually 3-4 days. I have seen many lawyers get boinked by the bar association for not knowing this. The deposit settlement funds in the trust account and that same day they cut checks to providers and clients. Even though they are allowed to by the bank and the bank will honor the checks, technically the money isn't in the trust account until a few days later. Ergo yout trust account is technically overdrawn (even though everything goes in order the check clears and yada yada yada). Saw a dear friend almost commit suicide over this-he deposited a check in trust (which later turned out to be a scam) and then cut a check out the next day when he waqs given access and four days later the check bounced.
And what Lee says is correct. The company isn't standing there with and out for cash. My advice remains the same, you contracted with the company-pay the company. You contract with the individual-pay the individual. You DID sign a contract didn't you?????

 

[Telecaster]

My company is “Telecaster, Architect,” (my real name, though) and it’s rare but the times I’ve wanted to cash a client’s checks I go to the issuing bank, pay a small fee if I’m not their customer, and they either cash it or say sorry we can’t cash it but can’t tell me why. I’ve had it go both ways. Also one time a client’s check was fraudulent, not just overdrawn. That was fun.

 

[boykinlp]

Tell him that you pay taxes and he should too!
Larry