Bad Checks. When you hear that you think of a returned check. But why was it returned? There are different types of bad checks and the laws are different for the different types.
If you accept checks you need to know what those laws are. Some important things to be aware of are:
- There are an estimated 450 million BAD CHECKS written every year. This includes checks written without sufficient funds or upon accounts that have been previously closed.
- Bad check laws do not apply when an individual stops payment on a check UNLESS it can be proven that the issuer of the check intended to stop the check when he presented the check for payment.
- Some states authorize the receiver of a bad check to collect a service charge to compensate for bank fees and/or cost incurred as a result of receiving and collecting on a bad check.
No matter what kind of "returned check" you get back from your bank it is important to remember that writing a BAD CHECK is a crime in every state, and is punishable by a fine and/or imprisonment.
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