What Is Considered a Bad Check?

The issuer of a bounced check may be charged with passing a bad check depending on the circumstances surrounding the bank’s refusal to honor it. While this issue may not appear to be that serious on the surface, it is considered a theft offense under New Jersey law. If you were charged with writing a bad check or simply want to learn more about them, here’s an overview of what they are, the potential penalties, and possible defenses.

What Is Considered a Bad Check?

When a check cannot be processed by a bank, the issuer of the check may be convicted of issuing a bad check if they meet certain criteria. For instance, if a person intentionally writes a check without enough money in their account to cover the amount of the check and the bank refuses to honor it, they can be charged. Additionally, checks can be classified as bad if the account does not exist.

What Are the Consequences of Bad Check Fraud?

Bad check fraud is treated as a crime in many jurisdictions. However, the severity of the penalties can vary based on how much the check was valued. 

For example, if the check was under $200, New Jersey considers it a disorderly persons offense, and the defendant can be fined up to $1,000 and be sent to jail for 6 months. Likewise, if the value of the check is between $200 and $1,000, the state considers it a fourth-degree felony that can incur 18 months in prison and a $10,000 fine. As the value of the check rises, the degree of the felony can increase to third and second-degree crimes and result in even more serious consequences.

How Can You Defend Against a Bad Check Charge?

The Issuer Was Unaware the Funds Were Not Available

If the person who wrote the check believed they had sufficient funds but faced unexpected overdrafts, the court may view the act as unintentional. This could be the case if a check writer expected a direct deposit to arrive before the date of the check but discovered their account lacked enough money due to a delay. By providing bank statements or correspondence confirming this, an attorney can argue that the actions of their client were not criminal.

The Check Was Not Honored By the Bank

At times, a bank’s refusal to honor a check occurs due to reasons unrelated to insufficient funds. For example, technical errors or administrative delays may lead to a bounced check even when the account to cover the amount existed. If an attorney can prove the defendant had enough money in their account when they wrote the check, liability may be shifted to the financial institution.

The Signatures on the Check Were Incorrect

Incorrect signatures on a bad check can signal forgery, which may absolve the check writer from responsibility. If the payee attempts to cash a check with a mismatched or fraudulent signature, the writer can argue they did not authorize the payment. For example, a person might discover that someone else wrote or altered a check from their account without permission. 

The Check Recipient Cashed it Early

Additionally, it’s also worth noting that if a post-dated check is cashed before the specified date, the writer might not have had sufficient funds available in the account at that time. A good example is when a person writes a check for future rent payments, but the landlord deposits it prematurely. In such cases, providing written evidence, such as emails or receipts that outline the agreed-upon terms, can demonstrate the early cashing of the check led to the bounced check.

If You’re Searching for a Criminal Defense Lawyer in New Jersey, Reach Out to the Law Offices of Zapicchi & Liller

The criminal defense attorneys at The Law Offices of Zapicchi & Liller LLP specialize in many different criminal cases and have the experience to ensure that your case receives the attention and care it deserves.

Contact us to learn more about the criminal and civil cases we help with and to schedule a consultation.