What steps should be taken to ensure a bad check can be collected?

Be sure employees have followed all items on this checklist:

  1. Keep a permanent record of home address of the clerk who actually received the check. This person will be a critical witness who must identify the person who made the check if the case goes to trial.
  2. Deposit all checks within 30 days of receipt.
  3. Within 90 days of receipt of check, mail certified demand letter to the address given by the maker of the check. Give the maker of the check at least 10 days and 3 days for mailing before prosecuting criminally. 
  4. Try to telephone the accused and keep a record of your efforts.
  5. Make sure the check is actually one for present consideration.
  6. Unusual situations such as: post-dating, stop payment, agreement to hold check, forgery, often prevents the collection from proceeding under criminal prosecution. You may wish to seek legal counsel for further information.
  7. If management has received partial payment, proceed to civil remedy only.
  8. Make photocopies of check (front and back), the 10 day demand letter, the certified mail notice, and/or the envelope mailed to the maker of the check if returned unclaimed.
  9. Proceed criminally for all checks that meet checklist in the county where the check was passed.
  10. Proceed civilly (in Magistrate Court if the amount is $15,000.00 or less) against all other checks in the county where the defendant lives.
  11. Refer all persons to the Magistrate Court who want to payoff bad check charges after criminal prosecution begins.
  12. Be prepared to pay a filing fee. Please see the list of filing fees for the fee for this service.

Show All Answers

1. I have received a bad check. What can I do?
2. Can I pursue criminal prosecution of a bad check?
3. What are the elements of the offense of deposit account fraud?
4. Where should the offense of deposit account fraud be prosecuted?
5. What reasons for dishonor of the check will support a criminal prosecution?
6. What is meant by present consideration?
7. What steps should be taken to ensure a bad check can be collected?
8. What information should I bring to court to start prosecution?
9. Are there forms that I must fill out?
10. What is a bad check citation and in what situation is it issued?
11. What is a bad check arrest warrant and in what situation is it issued?
12. Where are deposit account fraud cases tried?