If you don’t hear from the check writer after the first or maybe second contact, ask your attorney to draft a more formal letter and have it delivered via certified mail. Only accept cash from the bad check writer to cover the check and your returned check fee so you don’t have to worry about more bank charges if a check bounces again or if you run a credit card.
You usually get 100 percent of the check value and can even get rebates to help you cover your bank charges, depending on your contract with the service. Check recovery service providers include Global Check Recovery, Fiserv, and Check Recovery Systems.
Small claims court limits range from $2,500 in Kentucky to $25,000 in Tennessee, with the usual amount around $5,000. [3] X Research source The results of your lawsuit against the check writer will ultimately depend on the court’s decision on the intent of the check. The court will determine whether the check writer simply made a mistake (he thought he had the money in the bank and made an error in calculations) or was intending to defraud you, which should be provable by a history of bad check writing. Check by fraud is a much more serious charge and the check writer could end up in jail or prison, depending on the severity of the charges. In many states you will be able to recover not only the amount of the check but also triple damages of the check, court costs, interest, bank fees and attorney’s fees if you used one. It would be useful to point out to the check writer that a $90 bounced check could result in owing over $1,000. [4] X Research source
You will want to post this fee, if applicable, in your bad check policy.
Collecting name and phone number and comparing the writer to a legitimate id with a picture should be a strict policy. Never take third-party checks.
