<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by TanTav:
I started a new business. I would like to know if it is legal for me to impose a check charge for returned checks?<HR></BLOCKQUOTE>
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Check out my response.
Yes it is legal to charge for this (commonly known as a returned check fee) but you must contact your respective State agency to get the specific laws on this issue ie. exactly how much you can charge, can you charge a late fee, a penalty and interest, does the check writer have to be notified of the fee prior to writing the check, is there a requirement that a sign be posted stating the fee, if a sign is not posted can the fee still be assessed, if the business is conducted on-line is a disclaimer on the website sufficient etc.
Depending on your volume of business, you may be better protected by using a check guaranty type of company that most retail stores use. If you are going to accept checks, I would recommend this route. If your business is on-line there are various companies that even offer a check-by-fax or check-by-internet program. It is faster and a lot safer than processing a check drawn from an out of state or foreign bank or getting one through snail mail that you can not drop for fear it may bounce. Then the chess game may go from check to check-mate.
