How You Can Recover From a Bad Check | Personal finance
You could face criminal or civil penalties. Depending on where you live, the amount of the check, and whether you knowingly gave someone a bad check, you may be subject to federal or state criminal laws regarding bad checks, some of which could even result in a felony charge. On a less extreme level, the recipient of the bad check may try to take you to civil action if the payment issue is still unresolved.
Tips to Avoid Bouncing a Check in the Future
Whether you made a one-time mistake or are used to rejecting checks, you will find that there are steps you can take to avoid bouncing checks in the future.
Sign up for overdraft protection, if available. Overdraft Protection is a service offered by many banks that allows you to transfer money from a linked bank account to cover an overdraft. Some banks charge for this service while others provide it for free. If overdraft protection transfers aren’t available, your bank may have an overdraft line of credit, which is basically a way to borrow money to cover an overdraft. However, overdraft lines of credit can carry high interest rates, so be sure to use one only if you know you can pay it off quickly.
Consider sending a money order instead. If you receive a money order from your bank, the bank will likely withdraw the funds from your account immediately, so you don’t have to worry about accidentally spending the money that’s supposed to be used on a check. Some bank accounts offer these services for free while others charge for them, and sometimes there are funding limits on the amount you can put in one money order at a time. Check with your bank to see if this option is available to you.