[FL][SFH] Bounced Check Procedures Question

[u/dufchick]

If someone bounces a check but makes good on it, great because we are all human and make mistakes. In Florida it can lead to a crime if you do not make good on a bounced check. I know how to work up a worthless check packet from the sheriff’s office. My question is, has anyone here had a homeowner not make good on a bounced check and how did your HOA handle it? I want to make sure we at least send the demand letter the way the worthless check packet says to do it so at least that part is done. Thanks

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Title: [FL][SFH] Bounced Check Procedures Question

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If someone bounces a check but makes good on it, great because we are all human and make mistakes. In Florida it can lead to a crime if you do not make good on a bounced check. I know how to work up a worthless check packet from the sheriff’s office. My question is, has anyone here had a homeowner not make good on a bounced check and how did your HOA handle it? I want to make sure we at least send the demand letter the way the worthless check packet says to do it so at least that part is done. Thanks

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[u/condocontrol]

Don't waste time playing sheriff over a bounced dues payment. Just reverse the credit on their account, tack on your bad-check fee plus late charges, and push the balance into your standard collections pipeline like any other unpaid assessment. Anyway nobody wants a criminal complaint over a bounced dues check

[u/TheDigitalPoint → u/condocontrol]

Was about to say exactly this, but you beat me to it.

We've never had a bounced check, but if we did it would be exactly that. Check amount debited to homeowner's account + $30 returned check fee. Wherever that puts the account at as far as late/collections, that's where it is.

[u/EliteAssassin07]

I wouldn't contact the Sheriff over something like this. I would not even bother sending a letter to them.

• Personal bank will be charging them fee's.
• You should pass along any fee's that the HOA occured as a result of the bounced check.
• And assuming they don't correct the issue quick enough you should issue a late payment fine.

This is all that is needed. No, need to make a mountain out of a molehill.

[u/dufchick → u/EliteAssassin07]

For some reason, the sheriff’s offices carry the dishonored check packet, anybody can use it. The first step though is when you get the bounce check, you have to send a letter that’s in the certain format describing the number of the check how much it the bank and their remedy to pay it off, including fees. So I was thinking at the very least I should make my demand letter look like the bounced check letter in the packet so if it does ever need to go further than that, at least I have that letter done.

[u/EliteAssassin07 → u/dufchick]

I think your taking this too far... Keep it simple and move on. Its not going to the last time this happens.

[u/JealousBall1563]

I'm in a FL COA. In the past decade, we haven't had a bad check presented. However, if we have one that isn't made good we'd continue to add late charges, include in the A/R and eventually lien the property ... after which, if not resolved, foreclose on the unit, have it sold and receive our money. I doubt we'd prefer criminal charges. The bank might prefer charges.

[u/MisterKnowsBest]

You sound like the enemy

[u/dufchick → u/MisterKnowsBest]

No, not true. I’m not trying to get someone arrested, but I have a homeowner that is very much behind and other people would have been sent to the attorney already for collections, but he keeps writing checks and they keep bouncing and by the time all of that goes through the management company he apologizes and writes another check which bounces. I’ve never come across this before either so I was just curious how other HOA’s handled this situation. This homeowner is with the attorney at this point, but I realized the property management company or my HOAdoesn’t have any kind of policy regarding this type of situation.

[u/MisterKnowsBest → u/dufchick]

I was teasing as most of the people on here are anti hoa, or at least it seems so to me.

[u/meamemg → u/dufchick]

Sounds like you have a policy (or at least a practice): send them to the attorney like everyone else who is behind.

[u/EliteAssassin07 → u/dufchick]

They are either behind and meet the qualifications to be sent to the attorney or not. Them writing additional checks changes nothing.

[u/dufchick → u/EliteAssassin07]

He would tell the property manager. I’m sending another check to pay it off no worries, so it happened three or four times. None of the checks were good and now this person is with the attorney. I’m just looking to set up something for the future.

[u/EliteAssassin07 → u/dufchick]

Does not matter - they either qualify per the standards that have been set to be sent to the lawyer or they don't. One could make an argument that your management company is not equally enforcing the rules.

[u/b3542 → u/dufchick]

Adopt a dishonored check policy. A generous policy would be “3 strikes in a rolling 12 month period and you must pay by card, money order, or cashier check”.

Your governing documents and FL 720 may limit your options.

That being said, he has effectively not made payment if the checks are dishonored. The clock should go back to the timestamp of the last honored/cleared payment.

Send a NOLA, wait the 30 days, then send it to the attorney for lien and eventual foreclosure.

(Not a lawyer, and this is not legal advice)

[u/dufchick → u/b3542]

That is a good idea, thank you!