What Legal Measures Can I Take to Collect on a Bad Check?

( Originally published in the Farm & Dairy)

In difficult economic times when accounts are running lean, a bounced check can start a chain reaction that has widespread consequences. Fortunately, Ohio civil and criminal laws recognize the problems that can arise from a bad check. Here are some facts to keep in mind:

1. Bad Checks Can Bring Harsh Penalties

Passing bad checks can range from the most serious misdemeanor offense up to a third-degree felony, depending on the amount of the check.  Ohio law allows a creditor to sue the debtor who issued the check for up to three times the amount of the check and to recover all related costs and attorney fees.

2. Recovery Requires the Right Steps

The law requires creditors seeking to collect costs and fees to give a debtor specific notices and warnings about the potential penalties before proceeding with legal action. It is well worth the effort to contact an attorney who is familiar with this area of the law and who can guide you through the process of reporting the crime and laying the groundwork for a civil lawsuit.  

3. Common Mistakes Should be Avoided

Resist the temptation to become a detective before depositing a check. Even if you suspect someone has issued a bad check, you never really know until you deposit the check. Also, don’t rely solely on law enforcement. Police and prosecutors will be more focused on punishment and deterrence of the offense than on making sure you get paid. 

Christopher J. Baronzzi can be reached at cbaronzzi@hhmlaw.com or at (330) 337-6586.