The Dangers of Money Orders

Credit cards, checks, and cash are all that most people need for everyday transactions like buying groceries or paying the rent. In addition to these, however, there are other ways money can change hands. Money orders are one such way. Unlike checks, money orders are paid for in advance. This can have advantages over checks, but the risk of becoming the victim of a scam is high.

When you write someone a check, the check serves as a formal promise to pay the debt written on it. Writing checks for money that does not exist, commonly called ‘hot checks,’ is illegal because the person receiving the check has been misled. Money orders, in comparison, are as good as cash. This also means that, like cash, the money is gone as soon as the money order is handed over.

Unlike cash, money orders can be sent at a distance. This is fine so long as the person or entity receiving the money order is trustworthy. If you send a check and later discover that the recipient is a scammer, you can usually stop payment by contacting your bank. With a money order, however, the money is already gone.

Most often, the only legitimate reason a seller might request a money order is to guarantee your ability to pay before giving you goods or services. Instead of resorting to a money order, though, you can accomplish the same goal by sending a certified check. A certified check promises your ability to pay, but without the risks of using a money order.

Contact Us

If you have been the victim of a scam resulting in serious financial trouble, filing for bankruptcy might be the right way to get back on your feet. To discuss your case with an experienced lawyer, contact the compassionate Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A. today at 561-353-2800.