QUESTION
Can we cash in insurance checks mistakenly issued?
Asked on Oct 28th, 2015 on Bankruptcy - Washington
More details to this question:
I own a small business providing consulting services. Some projects involve payment directly from our client's insurance companies. We recently received a check for our services but also received two additional checks from the insurance company that were made out to our company. We did not do the work for the additional checks and I plan on returning the them but, out of curiosity could we potentially cash in on their mistake?
9 ANSWERS
No. Return the checks.
Answered on Nov 09th, 2015 at 12:26 PM
Although you technically can cash the checks, you also can be sued for the return of money you did not in fact earn.
Answered on Nov 09th, 2015 at 12:25 PM
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Do you really have to ask that question? No, if you did not earn the fee - don't cash the check.
Answered on Nov 09th, 2015 at 2:04 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can cash them, meaning if you deposit the checks the money will be credited to you account. But knowingly cashing a check issued in error is fraud and you could be subject to criminal and civil penalties, as well as getting blacklisted by insurance companies.
Answered on Nov 09th, 2015 at 2:04 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Yes, but you will eventually have to return the unearned money so you would be better off correcting the mistake and gaining a Hugh amount of good will and potential referrals and recommendations from the insurance company.
Answered on Nov 09th, 2015 at 2:03 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It would be a form of theft. Your decision not to cash the checks is wise.
Answered on Nov 09th, 2015 at 2:02 AM
2 Awards
No. They can sue you for reimbursement. Return the checks to avoid the potential of having to return the money later.
Answered on Nov 06th, 2015 at 8:24 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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No...that is conversion, larceny and.misappropriation of funds.
Answered on Nov 06th, 2015 at 8:24 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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The only way that you can cash the checks is if you want to spend some time as a guest of the government, i.e. in jail. Depending upon the amount of the checks, it is either a misdemeanor or a felony. It is certainly theft and a crime.
Answered on Nov 06th, 2015 at 8:23 PM