Is Writing a Bad Check a Crime?
Whether or not writing a bad check is a crime depends on the jurisdiction and the specifics of the situation. Here, we’ll delve into the laws surrounding bad check writing and explore the criminal consequences of this offense.
What is a Bad Check?
A bad check is when an individual writes a check that is returned unpaid, either due to insufficient funds or because the account containing the funds has been closed. This can occur accidentally, due to a discrepancy in account balances, or intentionally, as a fraudulent act.
Is Writing a Bad Check a Misdemeanor or a Felony?
The legality of writing a bad check varies by state and locale. In some jurisdictions, it is considered a criminal offense, while in others, it is treated as a civil matter. Some states have specific laws punishing bad check writing, ranging from misdemeanors to felonies.
Criminal Consequences
In areas where writing a bad check is a criminal offense:
- Misdemeanor: Typically punishable by fines and/or up to one year in jail (Table 1)
- Examples: California (up to $1,000 fine and/or one year in jail), Ohio (up to $750 fine and/or 6 months in jail)
- Note: Some jurisdictions may have more severe or lenient penalties
| State | Penalty (Fines and/or Prison Time) |
|---|---|
| California | up to $1,000 and/or one year |
| Ohio | up to $750 and/or 6 months |
| New York | Class B misdemeanor (up to 90 days and $500) |
- Felony: Typically punishable by increased fines and/or longer imprisonment (Table 2)
| State | Penalty (Fines and/or Prison Time) |
|---|---|
| Florida | Possibly a third-degree felony (up to five years and $5,000) |
| Illinois | Felony (up to 3-7 years and $25,000) |
| Oklahoma | Felony (up to one year and $1,000) |
Civil Consequences
In areas where writing a bad check is considered a civil matter:
- Civil Liability: The check writer may still be liable for the faces value of the check
- Example: A person writes a bad check for $500; they may still need to pay the full $500, plus any collection fees
- Lawyer’s Fees: Writings a bad check can lead to additional civil liabilities, such as attorneys’ fees
- Example: A plaintiff (the party receiving the bad check) may win a lawsuit and be entitled to recover their legal fees, in addition to the check’s face value
- Collection Efforts: Plaintiff’s may use collection agencies or legal action to recover outstanding debts
Defenses and Exceptions
- Accidental Discrepancies: If there was an honest mistake on the part of the check writer, they may still be liable but may also have a defense
- Insufficient Funds Exceptions: In some situations, the check writer’s bank may be responsible if they failed to notify them of insufficient funds
- Example: If a bank fails to notify a customer of available funds, and the check is returned unpaid, it may be considered an affirmative defense**
- Prescription: In certain jurisdictions, the statute of limitations for bad check laws may apply, limiting the time period for prosecution (e.g., 60 days)
Avoiding Bad Check Writing Charges
To avoid criminal prosecution or civil liability for bad check writing:
- Verify Account Balances: Ensure sufficient funds or sufficient credit in your bank account before writing a check
- Use Exact Account Information: Carefully verify the account holder’s name, account number, and routing number before writing a check
- Keep Records: Maintain accurate records of all checks written, with supporting documentation (e.g., bank statements) to prove payment
- Avoid Writing Checks for Payment: Consider alternative forms of payment, such as electronic transfers or cash payments, to avoid potential fraud and legal issues
Conclusion
Writing a bad check can have serious legal and financial consequences. It’s essential to understand the specific laws and regulations in your jurisdiction and take steps to avoid this offense. Being aware of the potential punishments and liabilities can help ensure you make informed financial decisions and avoid potential legal action.
