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People who write bad checks are normally charged fees by their banks and could be on the hook for any fees incurred by the payee. Knowingly writing a bad check may constitute a misdemeanor or felony, depending on the amount of the check and the state in which it was written.
A bad check refers to a check that cannot be negotiated because it is drawn on a nonexistent account or has insufficient funds. Writing a bad check, also known as a hot check, is illegal. Banks normally charge a fee to anyone who writes a bad check unintentionally.
If bad check writers fail to pay restitution, they face criminal charges and prosecution. Upon conviction, they may be sentence to county jail, court-imposed fines and still have to pay restitution.
If you wrote a check that bounced, your bank may charge you a nonsufficient funds fee or overdraft fee. In addition, the company you were trying to pay may charge you a late fee if the bounced check means your payment is now overdue. Failure to pay outstanding fees can result in your account being sent to collections.
(a) A drawer negotiating a check who knows or should know that payment of such check will be refused by the drawee bank either because the drawer has no account with such bank or because the drawer has insufficient funds on deposit with such bank shall be liable to the payee for damages, in addition to the face amount
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Further, the check-writer must refuse to pay the merchant the face value of the check plus a $30.00 service charge, within 10 days after receipt of notice of dishonor from the merchant via certified or registered mail.
According to Alabamas Civil Code Section 7-3-118, the statute of limitations to collect on bad checks is six years.
A dishonored cheque (or check or bank draft, according to local usage) has been presented for payment or deposited into a bank account but rejected or returned by the bank. Typical reasons include: Insufficient funds. Closed account. Improper, incomplete, or illegible drafting.
Passing bad checks can be illegal, and the crime can range from a misdemeanor to a felony, depending on the amount and whether the activity involved crossing state lines. A bounced check may result in fees, restrictions on writing additional checks, and negative impacts to your credit score.
If a cheque is dishonoured for any reason, the bank on which it is drawn must promptly return the cheque to the depositors (payees) bank, which will ultimately return it to the depositor.

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