Bounced Checks are NOT illegal?

[Tenant4toolong]

What is the name of your state (only U.S. law)? NJ

I have what may seem like a dumb question but I am confused about something....I work at a commerical debt collection firm (not a collector just admin support)...A collector told me today that giving us a bad check is not a crime as long as you have an account with that bank (regardless if you have the funds to cover the check or not)....I find this hard to believe..is there any truth to this?
The story is the debtor sent the firm a 100 check and it bounced today and we got a 24 fee for it. The president of the firm said to add the fee on to the balance owed and after 2 bounced checks require a credit card or money order, which the collector is fighting saying debtors won't pay if required to give a CC or MO and since they did nothing wrong we can not not accept their checks.

 

[Antigone*]

What is the name of your state (only U.S. law)? NJ

I have what may seem like a dumb question but I am confused about something....I work at a commerical debt collection firm (not a collector just admin support)...A collector told me today that giving us a bad check is not a crime as long as you have an account with that bank (regardless if you have the funds to cover the check or not)....I find this hard to believe..is there any truth to this?
The story is the debtor sent the firm a 100 check and it bounced today and we got a 24 fee for it. The president of the firm said to add the fee on to the balance owed and after 2 bounced checks require a credit card or money order, which the collector is fighting saying debtors won't pay if required to give a CC or MO and since they did nothing wrong we can not not accept their checks.

Here are the criminal penalties in your state for bouncing a check: Up to $1,000 fine or up to one year in jail or both.

Here are the civil penalties in your state: Face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00.

Here is the statute:

2C:21-5 Bad checks.


A person who issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee, commits an offense as provided for in subsection c. of this section. For the purposes of this section as well as in any prosecution for theft committed by means of a bad check, an issuer is presumed to know that the check or money order (other than a post-dated check or order) would not be paid, if:

a. The issuer had no account with the drawee at the time the check or order was issued; or

b. Payment was refused by the drawee for lack of funds, or due to a closed account, after a deposit by the payee into a bank for collection or after presentation to the drawee within 46 days after issue, and the issuer failed to make good within 10 days after receiving notice of that refusal or after notice has been sent to the issuer's last known address. Notice of refusal may be given to the issuer orally or in writing in any reasonable manner by any person.

c. An offense under this section is:

(1) a crime of the second degree if the check or money order is $75,000.00 or more;

(2) a crime of the third degree if the check or money order is $1,000.00 or more but is less than $75,000.00;

(3) a crime of the fourth degree if the check or money order is $200.00 or more but is less than $1,000.00;

(4) a disorderly persons offense if the check or money order is less than $200.00.

L.1978, c.95; amended 1981, c.290, s.22; 2002, c.65, s.1.

Please tell the collector that he needs to know his business a bit better if he wants to be a successful collector.

 

[Tenant4toolong]

Thank you!!! "collector" has been in the field over 16 years and still doesn't know this....after emailing her this info hopefully she can continue reading posts on the banking side to see what else she thinks she "knows"

 

[Antigone*]

Thank you!!! "collector" has been in the field over 16 years and still doesn't know this....after emailing her this info hopefully she can continue reading posts on the banking side to see what else she thinks she "knows"

Google is a great way to expand your knowledge and hers.

 

[TigerD]

Good luck finding a prosecutor that will bring charges for bouncing a check to a collection agency.

It may be illegal, but if you tell a debtor it is a crime and the prosecutor isn't going touch the case, you have violated the FDCPA.

When I had a debtor bounce a check - I made them pay via Western Union or Moneygram.

DC

 

[latigo]

Here are the criminal penalties in your state for bouncing a check: Up to $1,000 fine or up to one year in jail or both.

Here are the civil penalties in your state: Face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00.

Here is the statute: * * * * *

Please tell the collector that he needs to know his business a bit better if he wants to be a successful collector.

With all due respect I must challenge you to support your response by citing a case wherein it has been held that a NSF check used by a debtor to pay an antecedent debt constitutes a criminal act within New Jersey’s bad check laws.

In fact I would be interested in reading any decision from any state where the debtor/issuer has been successfully prosecuted under applicable bad check statutes.

New Jersey’s bad check laws, like most are designed to cover the fraudulent procurement of goods, services or depriving another of something of value by means of a worthless check, draft, etc. Hence the statutory imposition of knowledge/intent on the part of the drawer/maker.

Not to enable the prosecution of a debtor/issuer purporting to pay a pre-existing debt wherein no fraud or theft or deprivation has occurred. Read the New Jersey statute you have just cited:

For the purposes of this section as well as in any prosecution for theft committed by means of a bad check . . .

You can’t be so naïve as to believe that every time a check sent to pay on an open account such as a credit card account is returned to the payee marked ISF that a crime has been committed. But that is precisely what your response suggests.