Atlanta Check Cashing Store Files Bankruptcy; Money Orders Bounce

ATLANTA -- At least 200 customers of an Atlanta check cashing business are out more than $170,000.

Stores downtown and in southwest Atlanta sold money orders that later bounced.

Channel 2 first broke the story one month ago.

On Monday, GA Daily News consumer investigator Jim Strickland discovered the company, Easte Union Inc., filed for bankruptcy protection over the weekend.

"There was no money in the account. To me, that's bogus," said money order client Stacy Harris.

Harris said she just found out the money order she bought for October rent bounced. NSF is stamped on the copy of the money order, given to her by her landlord.

The downtown store where Harris bought it directed her to another location on Cleveland Avenue Southwest. Strickland walked in and soon met Stephanie Freeman. Freeman and a woman behind thick Plexiglas were shouting at one another.

WEB EXTRA: Check Cashing Store Issues Letter

Freeman: "They keep giving me the runaround about this situation."

Clerk: "Are you serious?"

Freeman: "Yes, I'm serious about my money."

Outside were more angry customers. A.J. Carter's money orders, for $102 and $500, also bounced.

" What about the rent? It's still got to be paid. Somebody's got to pay it. And now I have to pay late fees and all that stuff," complained Carter.

A bankruptcy attoey told Strickland that the money orders are covered by the store's insurance. Only the bankruptcy trustee can access it. We leaed trustee Neil Gordon is out of state.

"(At) The rent office, people don't want to hear that. They want their money," said Freeman.

Store owner Eric Young did not retu a message left for him, but an employee who would identify herself only as "Sandra" said the company was working to refund customers.

"We have compensated several companies and so they are doing what they can," she said.

"$85.48 ain't a lot to some people, but it's a lot to me. I want my money back," lamented Freeman.