Section 3-104(2) (b) of the UCC, defines a check as “a draft drawn on a bank and payable on demand.”
A bad check, bounced check, NSF check or whatever you want to call it is a check written that does not have the funds available in the bank to cover it or the check was written to draw on a closed bank account. Most of us have gotten a check like that at least once. Some of us have even written checks like that, perhaps by accident as in making a mistake as to how much is actually available in your checking account. And some people write and send a check today anticipating having the funds tomorrow in the bank to cover it. These checks are quickly covered, simply because no larceny was intended and the check writer is horrified to realize that their check bounced. But there are some people, actually too many, that make their living writing bad checks drawn on other people’s accounts through theft of checkbooks or identity theft or on closed accounts. That is a crime.
Most banks collect fees for services and for NSF checks that they do not honor without notifying you until you get your statement. One bounced check’s fees or a fee for anything that the bank has deducted can cause another check to bounce and then it can snowball.
All states have bad check laws to deal with this, many based on the amount of the check that can turn a misdemeanor into a felony. In a general sense, if a check is returned NSF that was used to pay a debt you already have, like a car payment, it is not usually considered under the bad check laws. If a check is returned NSF that is used for a purchase or anything that is supposed to be COD (cash on demand) for example rent that is due, that does fall under most states’ bad check laws.
Even if your case can’t be prosecuted under the criminal or civil laws of your state, it doesn’t change the fact that you are still owed money or owe it to someone else who is going to want to collect it. Whether you are an individual or a business who has received a bounced check that you have been unable to collect on, or if your checking account has been invaded by a thief who has stolen your money, or if you are being charged under the bad check law, Shpoonkle can connect you to an attorney who will advise and help you.
Pingback: Bounced Checks | Daily Legal Law
I go to see day-to-day some websites and websites to read content, but this weblog gives quality based content.