Avoid Issuing a Bad Check at all Costs

No matter how careful you are there may come a time when you end up writing a bad check. This article discusses the pitfalls and consequences of writing a bad check.  For most people, this is an honest mistake, but a costly one. For others, this becomes a bad habit born of poor budgeting and impulsive thinking. A bad check can haunt you for a long time if you don’t take care of it quickly. Along with paying a hefty fee to your bank, you may have to pay a fee to the person you paid with the bad check. Bank fees can range from twenty to thirty dollars, and stores may charge you nearly the same price for their trouble. If you write just one bad check, and take care of it quickly, it really shouldn’t affect you too much. A person who continually writes bad checks will end up paying fee on top of fee, resulting in a huge dent in their budget. After a while, your bank may decide you are an extreme risk and close your account.

If bad checks pile up, your bank account will go deeply into negative numbers. If this is not taken care of in a timely matter, they will pull the plug on your account, and you will have to repay the difference before you can open another account elsewhere

A bad check written on a closed account is even worse, so think before you do this, even if you are desperate. Establishments can also file a court action to retrieve their money, making your situation worse. There are companies that specialize in recovering a bad check, and they will soon be calling you. There are bad check laws that each US state have passed. There are both civil and criminal penalties for writing a bad check, although it is more expensive and difficult to prove a criminal case. For example, in Alabama, a bad issued check of $500 or more, will bring you a fine of not less than $500 or more than $5000 or imprisonment up to 3 years, or both. For a bad check under $500, the fine will depend on the amount and offense. The Court shall also order restitution to the plaintiff and the defendant pays court costs if convicted. There are bad check laws in place so beware of intentionally issuing them as you may face civil or criminal action against you.

It takes a while to shake the stigma of being known as a person who is likely to write a bad check. Once you have paid off your debt, you may still have a hard time finding a bank willing to let you open another checking account. Your bad check (or checks), and your negative bank balance, will be recorded on ChexSystems until you pay up, or for five years.

You don’t want a bad check following you around, ruining your credit, and possibly costing you job opportunities. Be as careful as possible so you never write a bad check. If you bounce a check, be smart about it and take care of the problem as soon as possible. Accidents happen, it is what you choose to do about it that will determine what happens next. Always keep an eye on your financial affairs so a bad check won’t follow you around for a long time to come.