If a bad check is written on a closed account and the merchant turns it over to a collection agency, can they pursue criminal action?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If a bad check is written on a closed account and the merchant turns it over to a collection agency, can they pursue criminal action?

Over the last 4 years I have written a lot of bad checks, some on closed accounts. I have paid 75% of them, the ones that sent me 5 day letters mostly, but still have old ones that were sent to collection agencies, some on my credit report now. I have heard that once a merchant chooses this route, they waive the right to criminally pursue the matter, is this true? Also, how long do they have to pursue a bad check? I have a couple that just asked me to pay and I heard nothing. A couple that I never heard anything from about the check? I also have multiple from the same merchant sent to collect.

Asked on July 31, 2010 under Criminal Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 14 years ago | Contributor

1) Trying to collect on a check, including by either sending it to collections or selling the debt to a collections agency, has no effect on criminal liabilty. If you committed a criminal act, you could potentially be prosecuted regardless of whether and how anyone tries to collect.

2) If you wrote bad checks knowing the account was closed or that there were insufficient funds, you committed  a crime. That knowledge--that the check would not be honored--is what makes it criminal.

3) How long a merchant has to pursue the matter depends on a number of factors, including the nature of the underlying transaction and the state (not just your state; potentially you could be sued in the merchant's state, too). It's often at least 3, potentially 6, years, but both longer and shorter periods are not unheard of. You'd need to consult with an attorney about specific cases or instances for an answer.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption