Money Order Drama- Need Help.

6 Replies

Here is how everything went down.

1) Money Order lost by USPS (tenant produced a receipt and I called to verify it was legit)

2) Tenant calls about re-issue but MoneyGram requires 30 days before a re-issue(??)

3) Contacted Post Office- no luck

4) Money Order showed up (tagged with USPS "return to sender" tracking stamp) and whole month late

- Tenant has paid all late/ administrative fees for everything. 

5) Deposited money order

6) Came back returned because a "Stop Payment" was issued. $10.00 fee assessed to us. 

7) I just contacted the tenant about the issue, telling them to call MoneyGram.

My question: What do I do next?

Pay online or have them bring cash.

Set up digital payments

If you deposited the original money gram that had been reported lost or stolen, then I'm not surprised there was a stop payment on it. Logic would have been to check if it's valid before attempting deposit. I'd probably absorb the $10 fee since the tenant already paid a late fee and had informed you of the lost money order.

If you deposited a reissued money gram presented by the tenant, then it should have been good. If this is the case, follow your NSF procedure (as per your rental agreement) and recoup the $10 from your tenant.

Require tenant to pay cash to cover the current rent due. Then rethink options for receiving rent. We encourage our tenants to use the bill pay feature that most banks offer - and thus receive a bank check by mail. Another viable option is setting up a means for tenants to pay electronically with an online service or by cash via Pay Near Me.

If you have a long history of successfully receiving rents by mail (personal checks, bank checks, and money orders), then no need to change your procedures at this juncture. Mail mishaps occur and so do on-line mishaps and bank handling mishaps. Part of the way things work... or not.

Originally posted by @Max Tanenbaum :

Pay online or have them bring cash.

 I have offered this as a payment option through Cozy but tenants decided mail was still fine. I think this last episode has piqued their interest in online payments. They have asked me if it is still available.

Originally posted by @Account Closed :

Set up digital payments

 I plan on using Cozy for online payments. 

Originally posted by @Marcia Maynard :

If you deposited the original money gram that had been reported lost or stolen, then I'm not surprised there was a stop payment on it. Logic would have been to check if it's valid before attempting deposit. I'd probably absorb the $10 fee since the tenant already paid a late fee and had informed you of the lost money order.

If you deposited a reissued money gram presented by the tenant, then it should have been good. If this is the case, follow your NSF procedure (as per your rental agreement) and recoup the $10 from your tenant.

Require tenant to pay cash to cover the current rent due. Then rethink options for receiving rent. We encourage our tenants to use the bill pay feature that most banks offer - and thus receive a bank check by mail. Another viable option is setting up a means for tenants to pay electronically with an online service or by cash via Pay Near Me.

If you have a long history of successfully receiving rents by mail (personal checks, bank checks, and money orders), then no need to change your procedures at this juncture. Mail mishaps occur and so do on-line mishaps and bank handling mishaps. Part of the way things work... or not.

 Its funny...for the first year, they were on time every time. This second year has been a doozy for them. But I have stayed on top of them and kept up with everything and stayed in communication with them about late/ administrative fees and they have paid them all. It feels like we are holding the tenants by their ankle and shaking the money out of their pockets every month. But the effort has paid off and we have made more money from the fees. I prefer it to be smoother, so we are going to offer Cozy to them. 

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