Consequences Of Writing Bad Checks

Jan. 7, 2013 - PRLog -- When a consumer writes a check for more than the amount in their checking account, they overdraw their account. The bank or credit union has the choice to either pay the amount or not. If it pays even though the check writer does not have the money in their account, they may be charged an "overdraft" fee. If the bank returns their check without paying it, they may be charged a "bounced-check," or "nonsufficient funds," fee. Plus, the person or company that they wrote the check to--for example, a store, landlord, or the phone company--may charge a "returned-check" fee in addition to the fee the bank charges.

If a merchant is given a bad check, they can sue for the amount of the check plus bank fees. They may also add damages to the claim.  The merchant can also take criminal action against the checkwriter if the consumer fails to rectify the situation in a timely manner.

One Company called Bad Credit MD, has detailed information on the civil and criminal actions merchants can take against consumers that have written them a check that has bounced. This information is located at http://www.badcreditmd.com/badchecklaws.html.

Bad Credit MD, is a  free On-line information guide that helps people with credit problems in Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

Bad Credit MD has been in business helping consumers with bad credit since April of 2007 and is a subsidiary of Enticing Designs Publishing.  The staff has various  backgrounds in the financial and mortgage industry.  This self-help site has over 500 pages of credit advice and articles.  Its staff has researched its information with various governments around the world to provide the most comprehensive and accurate information free of charge.

The best way to avoid overdraft and bounced-check fees is to properly manage a checking account so it does not lead to it being overdraw. Sometimes mistakes happen so if one does overdraw their account, they should deposit money into the account as soon as possible to cover the overdraft amount plus any fees and daily charges from the bank. Depositing money into the account can help avoid additional overdrafts and fees.

Many banks (as well as savings and loans and credit unions) offer "courtesy overdraft-protection," or "bounce coverage," plans so that checks do not bounce and that ATM and debit card transactions go through. With these plans, a consumer will still have to pay an overdraft fee or a bounce coverage fee to the bank for each item. But they will avoid the merchant’s returned-check fee and will stay in good standing with the people they do business with.