If you have inadvertently written a check which you realize will bounce or otherwise must know what the bad check laws are in D.C. (District Of Columbia, read on.
What’s a Bad Check?
To put it differently, what a check may be worth (when written) when there is less cash in your account than the sum of the check is wrote out for and the bank will not honor paying the check holder the sum of money written on the check when they attempt to cash it.
Not all bad checks bounce, yet, as bad checks are regularly honored by banks in which they charge overdraft fees for funds paid that were not in the account to reimburse them.
What Happens When A Check Bounces – District Of Columbia
The check writer then has five days before any additional legal action can be taken by the party to pay the company or person back. Generally, the debtor has to see the person or company in person to reimburse them by pay cash.
If the debtor will not repay the bounced check within five days the lender has two choices: filing a civil lawsuit or pressing criminal charges.
Criminal Charges – District Of Columbia
Writing bad checks are considered misdemeanors. The end results for writing bad checks in D.C. comprise of the following:
1) Fines and up to a felony charge
2) Having to repay the cash you owe the lender
Oftentimes, lenders select to sue bad check writers (or instead of) filing criminal charges. In the District of Columbia, lenders can sue for protest fees and damages. Protest fees are any sums of cash the check holder must pay to try and show that the debt is owed by you should you decide to challenge a notice which you owe money. If the case is won by the check holder, you will have to pay the cash and any protest fees the court decides you might be liable for.
Other Effects of Writing Bad Checks
As well as criminal and civil fees, individuals who write bad checks are generally setting their bank accounts in danger. Your bank may choose to shut the account, if you incur a lot of overdrafts or your account remains overdrawn for a time period. Most banks use Chexsystems to assess the credit of those who try to open accounts and you might be unable to start a bank account, if your Chexsystems report says that you’ve had an account shut for writing bad checks. In this instance, you may have to start a bank account at a bank designed to help people who have lousy bank credit to reconstruct their credit. Higher monthly fees often charge than checking accounts that are standard so that they can insure your danger.
Clearly, you would like to make an effort to avoid writing bad checks. Writing bad checks causes legal issues and can affect your life for a long time. Should you make a blunder, do not panic — banks only charge you overdraft fees and honor a couple of errors each year. If your check does bounce, get the cash to repay your bank and the check holder when you find out about it so it is possible to prevent negative effects that are potentially serious. Bad check laws in D.C. are meant to get individuals who purposely write checks that the check holder understands are useless, so if you’re responsible about paying your duties, you should not have any issues.