Worthless Checks Division


Procedure when taking a check...
It is vital that you stress to your employees the importance of being thorough when accepting a check. If your business has set a policy for all customers, then no one should have any reason to feel they are being treated unfairly. It is a good idea to post a "check-list" where a cashier can see it easily. It should include at least the following:

  1. Is the check properly dated?
    Checks must be dated the same day that they are issued. Worthless checks that are post dated cannot be prosecuted.
  2. Is the signature legible?
    Do NOT accept checks previously signed. Have them signed in your presence and compare with driver's license or other ID.
  3. Is the address complete?
    Require a permanent street address, not a P.O. Box number, unless you know the writer.
  4. Can you confirm the identity?
    Every type of ID can be forged. The most reliable ones are the ones with physical descriptions, photos, etc. If you are suspicious, then ask the writer to hand you the license. While it is in your hand, ask his address and/or birth date. If it is not his license, then he may be caught off guard and give the wrong information.
  5. Do written amounts and numbers correspond?
    Banks will not honor checks with discrepancies.
  6. Is the ID used recorded on the check? Record the type of ID and ID numbers on the check as well as the initials of the clerk who accepts the check.

 

Sample Letter


Dear Mr. Doe,

Your check #000 dated August 00, 0000, in the amount of $000.00 given for the stereo you purchased on the same date has been returned by the State Bank marked "insufficient funds" (or other reason marked on the check by the bank).

You have ten (10) days from receipt of this letter to bring payment in cash, cashier's check, or money order for the amount of the check or this matter will be turned over to the prosecutor's office.

Sincerely,

Dear Merchant,

"It always happens to the other person" is not always true. YOU could be the victim of one of today's most rampant crimes -- issuing worthless checks. The purpose of this web page is to alert you, educate you, and assure you that your District Attorney's office will do everything possible to prosecute the worthless check writer.

I hope that the information presented here assists you. Alert and knowledgeable citizens are the first defense against all crimes -- particularly worthless checks. If you have any questions, contact my office at the number listed in our CONTACT section or e-mail me from that same section. Remember, worthless checks can be controlled only with your help.

Thank you

Checks to avoid!
The following checks usually cannot be prosecuted as worthless checks:

  • A post-dated check
  • A stop-payment check
  • A two-party check
  • A check more than one year old
  • A check for less than $5
  • A check for which partial payment has been received
  • A check given in exchange for a returned check
  • A check marked "refer to maker", "drawn against uncollected funds", or "unable to locate account"
  • A check which does not identify who accepted it
  • A check not presented to the bank within 30 days of issuance
  • A check for which no 10-day notice was given

Clues for detecting bad checks

Be careful of personal checks with low series numbers. About 85% of all uncollected worthless checks are new account numbers between 101 and 150.

Check the finish on the black magnetic computer numbers on the bottom. Magnetic ink is very dull -- never shiny.

Look for at least one perforated edge. All checks except government or computer-produced will be perforated.

Look for multi-colored checks from large corporations, but beware of "Xerox color." Watch for tacky, shiny, raised letters. This is the best indicator of a copied check.

Procedure when a check is returned...
There are certain procedures you must follow before this office will accept a returned check for prosecution:
The check must be presented to the bank for payment, even if you know it will not be honored, and stamped by the bank with the reason for it's dishonor.
You must send written notification to the check writer informing him of the reason that the check was not honored. The written notice must be sent certified mail, return receipt requested. The sample letter above provides the information, which must be included. Be sure to keep a copy of your letter to the check writer.
If the check has not been paid after ten (10) days, you must personally bring it to this office and furnish the following:

The original check with the bank flag or notation indicating the reason it was not honored

  1. The signed receipt from the certified letter or the correspondence (unopened) marked "refused" or "unclaimed"
  2. A copy of your letter to the check writer
  3. The name, address, and phone number of the person who accepted the check and who can identify the maker
  4. Specific identification of the maker such as driver's license number, date of birth, and physical description. It will be necessary for you to supply this information on a form when you come into the office.
Procedure when the check is turned over to the prosecutor's office...
When you bring in a check, it will be logged in and a search will be made to see if the maker has any other worthless check offenses pending. Your check will be combined with any previously filed offenses to expedite your restitution.
If there are no additional cases pending, then the office usually notifies the writer that a case is about to be filed against them. If he does not make restitution and pay the processing fee, then the prosecution will begin.
The Worthless Check fee Act was passed by the Legislature to defray some of the 		Prosecution expense and require the worthless check writer to help bear the cost of this misdeed. Because of the worthless check fee, it may cost the issuer up to double the amount of the check. After filing, there could be additional expenses including fines and court costs.
Hopefully, this web page explains the importance of your role in obtaining the necessary information to enable this office to control the worthless check problem and provide you with the restitution you deserve.
If you have any questions or problems, please contact us. We will be glad to help in any way.

 


©2007 Twenty-First Judicial District Attorney's Office
All rights reserved.