Shakes: I’d guess that your check says “non-negotiable” because you have direct deposit. Otherwise, how could you ever cash it?
Also, not all states have the law you mentioned. Some of them do have a law that states that you must be paid within one pay period after the end of the pay period in which you worked (which may be 7 days, 14 days, 30 days, whatever the company’s system is). Other states may have no regulations about this at all.
You bring up a very interesting point:
Believe it or not, you cannot create an instrument that matches all the criteria of a negotiable instrument, and then avoid negotiability by declaring on the instrument that it is not negotiable - in the case of a check. See, e.g., Brady on Bank Checks.
IN other words, a check could say “non-negotiable” and still be a negotiable instrument.
Bricker: I have heard that the “non-negotiable” on a check doesn’t have any legal validity, but my question is, would his paycheck really say that if it were supposed to be a regular check? I mean, why would his co. issue a standard paycheck that says NN? That’s why I guessed he must have direct deposit - but that’s not to say that the check with the NN notation couldn’t still be cashed - although I wonder what would happen if someone took his direct deposit AND knowingly cashed the check - that must be fraud or something, right?
Or is there a reason a company would issue a regular, normal payroll check with NN on it?
Nothing to add to **Bricker’s **cogent analysis in his several replies, other than to say that Brady on Bank Checks is one of the 3 or 4 leading authorities in the area. It sits on a shelf behind my desk, and I consult it weekly. Urban Ranger, you should listen to Mr. Bricker. He obviously knows of what he speaks.
(The Brady plug has nothing to do with the fact that its editors chose to cite one of my cases)
Thanks for the elegant explanation. So it appears that not repaying the money could not result in a “black mark” on his credit unless it were taken to court? In which case checkmate will have more to think about than any black marks.
But then again, if the firey fascist sheriff sells your property to pay the debt, it may never enter the credit record in the first place…
Thanks.
Why is the sheriff “fascist” for retrieving stolen property?
No. I merely posted the example that stood on the most firm ground, to rebut the proposition that there was no way a “non-credit” debt could appear on your credit report.
In fact, if you hire a debt collection service to try to collect your money, rather than going to court, the service may report your debt to the credit bureaus as negative information. This is obviously a little hinky, because what’s going on your report is unverified information. Typically, the first collection letter will tell you to respond within 30 days, “…or we will assume the debt to be valid.” But there’s no meaningful way to stop them from reporting the debt, regardless of your reponse to them.
On the other hand, the credit bureaus are reasonable about investigating and removing information that cannot be substantiated.
SHAKES said:
<<< My paycheck always say “NON NEGOTIABLE” Not sure if that means anything though. >>>
That simply means that nobody, apart from the person whose name is on the signature (ie you) can cash the check, and that it can ONLY go into your bank account. This means that just anybody can’t steal your check, hand it over and get cash out.
Give back the money.
It was a joke. I did say “firey fascist sheriff” (did I even spell that right?) as a humorous rephrasing of Bricker’s repsonse to me: “The judgement could also be used to ask the court to issue a writ of fieri facias, which orders the local sheriff to seize…” (emphasis mine).
Sorry for the confusion…
I didn’t catch it either, Balthisar, but that’s a pretty good joke.
(It’s spelled fiery)
I apologize if this is a hi-jack.
I would like to rebut Balthisar’s assertion that if the sherrif sells your property, the item may not enter the credit record.
The mere fact that there was a judgement against you in any court case may in fact be a component of your consumer credit report with Equifax, Transunion and Experian (among others).
The presence of any judgements or collection items on a credit report has a substantial negative impact on your computer-generated credit score.
This being said, some judgements never show up on consumer credit reports. Some only show up years after they are reached.
Theoretically the OP could wind up with the following:
Each individual negative mark from the above listed can drop your computer-generated credit score another few notches.
Bear in mind, if he’s out of work, some employers (such as mine) check credit reports in addition to interviewing previous employers.
I advise re-paying as soon as practical.
If the above information piqued your curiousity regarding credit reporting, I advise checking out www.creditnet.com and following the links to the discussion forums.