- Presenting a bad check, when you know there isn't enough money in the account to cover the amount, is a form of fraud. While nearly anyone can overdraw on a checking account accidentally, repeatedly bouncing checks can indicate either significant financial difficulties or intentional fraudulent behavior. The inability or unwillingness to discharge the financial obligation can result in serious consequences.
- In Massachusetts, the check writer has two days to resolve the overdraft with his bank. After this time, the payee of the check can impose financial penalties in addition to what the bank charges. If the payee is not reimbursed, she can bring civil suit against the payor to pay the original amount, plus court costs. Additional damages of $100 to $500 can also be levied. Amounts under $250 are considered misdemeanors.
- If the amount of the bad check is greater than $250, the crime becomes a felony. In Massachusetts, this felony offense can mean a fine of $300 or one year in jail or a $600 fine with up to two years in jail. Check fraud for large amounts associated with significant property value can earn five years in a penitentiary.
- If you're the recipient of a bad check, you may think of pursuing legal action. However, this is a lengthy and costly process without a guaranteed favorable outcome. Thorough documentation may convince a judge that criminal intent was behind the larceny. Weigh the time and expense and decide if it is better to recoup a financial loss or to punish the malefactor.