Company wrote a check to my business and it was desposited to my account the company then wants the check bac?

the company wrote the check to my company and i deposited it to my account. The check was intended for on of my former students. The spoke with that person and he said deposit the check as payment. then he turned around and went to the company and said that he did not get paid. However that is not the case the check was written to me anyway. He he was in agreement with the process of me depositing the check for payment of his debt to my company. now the company that wrote the check wants me to return the funds to back to them so that they can issue to money to him. its like getting paid and then being forced to give it back to a third party.

Give the check back to the company that wrote it and get the money from the guy who owes you or take him to sm. claims court. That way, you stay out of trouble & are not part of his trying to run a fraud on that co. You will be totally in the clear. You may even be able to take that Company to court, depending on the circumstances. They should never have written you the check in the first place. Be sure you document everything so that you can prove whatever you may have to.

It soumds like the former student had owed you money for something or other.

If you can show the company that paid you the check an agreement or statement that the student owed you the money, then that should settle it. If not a statement that the check was used for payment owedto you should suffice.

As it is - since they wrote the check to you, and it already cleared their bank then there is little they can do about it, other than harrass you about it. So the question becomes whether you need that company for future payments. Either way a letter stating what happened should do it.