Returned Check Laws

Writing checks without having sufficient funds in the bank can get you into legal trouble.handcuffs image by William Berry from Fotolia.com

It is against the law in the United States to write a check without sufficient funds to cover it. Laws regarding this matter differ from state to state. It is important to keep track of the funds in your bank account, as state officials have the prerogative to prosecute regardless of whether you intended to write a bad check.

Legal Responsibilities

The person who signs a check is legally responsible if the check is returned for insufficient funds, according to the Consumer Bad Credit Guide. Knowingly passing on a bad check is considered fraud; the person who does so may be subject to returned-check laws as well.

In most states, writing a bad check for more than a certain amount of money is a criminal offense. In some states, such as Arizona, offenders can be sentenced to jail for up to six months for any returned check, no matter how small the amount. In many cases, bad-check writers must serve time in jail or prison as well as pay fines of several hundred dollars. Civil penalties, such as paying twice the amount of the check, may be levied in addition to criminal sanctions.

Certain types of checks are not subject to returned check laws. Postdated checks are usually not subject to these laws because the law defines a check as "payable upon demand," which postdated checks are not. Checks used to satisfy a prior debt are also not generally subject to returned check laws, according to the National Check Fraud center. However, returned checks used to cover a cash-on-delivery payment are subject to these laws.