Bank Consequences

• If the bank account is closed, the issuing bank will notify Chexsystems and the check writer is notified in writing of the problem. The Chexsystem notification may keep businesses from accepting checks from the person and could prevent the writer from opening another bank account. The bank will charge the writer an overdraft and bad check fee and may also prosecute the who wrote the bad check.
  
  

Notification

• Once you receive the returned check mail, a certified demand of payment is made to the check writer's address listed on the check. This typically includes the cost of the check and an additional service fee, which is generally 5 percent of the total check amount or $20. Most states require you to give an additional 10-day period for the check writer to pay the debt. Once this time passes, you may sue for payment or make a criminal accusation. Be sure to keep all records demonstrating your intent of notification as they are required in either case.
  
  

Civil Suit

• If the check does not warrant criminal charges, you can sue the writer for the check amount and in most cases for additional civil damages, fees and fines. If you decide to file a civil suit, you must file the lawsuit in the county in which the check writer lives. You can expect to collect the check amount and damages of approximately two to three times the value of the check, but these are limited to $500.
  
  

Prosecution

• Writing a check on a closed account is a crime, and the law assumes the writer knows the check will not be honored when written. Although the consequences of bad check writing differs from state to state, if it is an intent to defraud, you can prosecute. In most cases, a check for less than $200 is a summary offense and results in fines similar to a traffic ticket, while larger amounts may constitute jail time. Contact your local police department and provide any evidence you have collected to the police officer. If there is enough evidence, the state prosecutor's office will file charges.