Prevent Bad Check Losses!

Tips to help you avoid bad checks.
©2000 Michelle Dunn

The Do's of Check Acceptance:

• Name address and phone number imprinted.
• Current date only.
• Compare ID picture with that of the person cashing or writing the check.
• Make sure signature matches ID signature.
• Make sure phone number is a working phone.
• Ask for street address — no Post office boxes.

The Don'ts of Check Acceptance:

• Don't let the check writer rush you.
• Don't take any check or person for granted, ALWAYS obtain proper ID.
• Don't accept prewritten personal checks. At least the signature should be written in your presence.
• Don't accept unsigned checks.
• Don't accept starter checks.
• Don't accept two party checks.

When accepting a check,
remember what is important:

Spotting A Possible Problem Check:

• Checks that have a number under 300.
• Checks that do not have a phone number printed on them.
• If the address on the check is written by hand or if the current address is changed.
• No photo ID.
• Checks drawn on out-of-state banks.
• Checks for more than the amount of purchase.
• Two party checks.
• Check number is handwritten, stamped or typed.
• Loose checks not being recorded in a check register.

YOU DON'T HAVE TO ACCEPT A CHECK AS A FORM OF PAYMENT IF YOU THINK IT PRESENTS A RISK!

Spotting a Forged Check:

• The check writers name is different than the name printed on the check.
• If the top or side of the check is smooth and not perforated.
• If the bank numbers across the bottom appear glossy or irregular.
• Any difference or misalignment of type styles.
• Printing on the check appears faint or photo copied.
• Photo ID does not match information on the check.

REMEMBER… Acceptance of a check as form of payment is a privilege extended by you.

Writing a BAD CHECK is a crime in every state, and is punishable by a fine and/or imprisonment. There are an estimated 450 million BAD CHECKS written every year. This includes checks written without sufficient funds or upon accounts that have been previously closed.

***PLEASE NOTE***
Bad check laws do not apply when an individual stops payment on a check UNLESS it can be proven that the issuer of the check intended to stop the check when he presented the check for payment. Some states authorize the receiver of a bad check to collect a service charge to compensate for bank fees and/or cost incurred as a result of receiving and collecting on a bad check. The following is a list of approved fees that can be collected on a returned check in each state:

ALABAMA
$27

ALASKA
$25

ARIZONA
$25

ARKANSAS
$20

CALIFORNIA
$25 for first check and a service fee of up to $35 for each subsequent check to the same payee

COLORADO
$20

FLORIDA
$25 if face value does not exceed $50, $30 if the face value exceeds $50 but does not exceed $300, $40 if the face value exceeds $300 or 5% of the face value of the check, which ever is greater.

GEORGIA
$25 or 5% of check, whichever is greater, to be paid in 10 days.

HAWAII
$20

IDAHO
$20, notice must have been given at time of sale.

ILLINOIS
$25 OR all costs & expenses.

INDIANA
$20 or 5% of check, whichever is greater, not to exceed $250, due in 10 days.

IOWA
$20 posted conspicuously or 5% of the face, which ever is greater. $50 if the check is presented twice.

KANSAS
$10 due in 14 days

LOUISIANA
$25 or 5% of face amount, whichever is greater, posted at point of sale

MAINE
Through civil action only, not to exceed $50 or an amount agreed in contract with consumer

MARYLAND
$25

MICHIGAN
$25 to be paid within 7 days, if not paid as requested, but within 30 days the service fee is $35

MINNESOTA
$20 posted at point-of-sale OR actual cost of collection not to exceed $30.

MISSISSIPPI
$30 with payment to be made within 15 days

MISSOURI
$20

MONTANA
$30

NEVADA
$25

NEW HAMPSHIRE
$25 or an amount agreed to in contract with consumer

NEW YORK
$20

NORTH CAROLINA
$25

NORTH DAKOTA
$20

OHIO
$30 or 10% of face value of check, whichever is greater

OREGON
$25

PENNSYLVANIA
$20 if notice prominently displayed at point of sale, when check is issued and after conviction.

RHODE ISLAND
$25 after 30 days

SOUTH CAROLINA
$25 or $30 for checks over $100

SOUTH DAKOTA
$30

TENNESSEE
an amount up to $20

TEXAS
$25 plus sales tax

UTAH
$20

VIRGINIA
$25

WASHINGTON
fee not to exceed $40 or face value of check, plus interest of 12% per annum as long as check is not for payment of interest, collection costs or attorneys fees.

WEST VIRGINIA
$15

WYOMING
$30

WISCONSIN
all reasonable collection costs.

Michelle Dunn started and successfully ran M.A.D. Collection Agency for 8 years, and has received wide press with articles appearing in Ladies Home Journal, PC World, and many other magazines and newspapers. Michelle owns and operates www.Credit-and-Collections.com (an online professional collections community for networking and discussions) and Never Dunn Publishing, LLC.

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