Bad Check Collection

Collection of NSF checks in Georgia
Nothing is more frustrating to a creditor who has provided goods or services to a client than to receive payment in the form of check that is later returned by the bank as insufficient funds. Fortunately, the state of Georgia Bad Check Laws are in your favor and by following the correct procedures to collect on a bad check, you will most likely be able to recover your money as well as additional bad check penalties.

Insufficient funds check collection in Georgia
The state of Georgia has stiff penalties for those who pass bad checks. In most cases, the creditor will be able to add double the amount of the check (Up to $500) and a bad check administration fee of $25 as a statutory bad check penalty. Unfortunately, this statute does not extend to stop payment checks, but if the debtor has issued a bad check returned by the bank as insufficient funds, the penalty can be assessed. In addition, Georgia has bad check criminal statutes in effect that cover checks that have been issued as insufficient funds. Please contact our offices to obtain more information regarding these statutes.

I Was Given a Bad Check, What Should I Do?
Even if you are very careful to take precautions when accepting checks, you may still experience a bad check from time to time. When you have a provided a service or product to someone, you deserve to be paid. Because of this, there is nothing quite as frustrating as discovering a check you accepted was returned by the bank as insufficient funds or written on a closed account. The issuance of a check on an account that either has insufficient funds or is closed, may constitute a crime in Georgia. In addition this may give rise to a civil claim for damages. Civil damages for writing bad checks are provided for and fully set forth in OCGA 13-6-15. At Howe & Associates, our experienced collection attorney can help you file a lawsuit to get the money owed you, but there are a few steps you should take first.

1. Make a Call to the Check Writer
While many customers write bad checks knowingly, in some cases it was simply a mistake. They may have balanced their checkbook incorrectly, or there may been a mistake with the paycheck from the job. We encourage business owners to call the customer first, inform them that their check was returned, and give them to opportunity to pay what they owe. If they cannot pay you by check, you could ask them to pay by cash. Plan on contacting the customer more than once, but always follow best practices when calling and don’t call in the early morning or evening hours. Never threaten the debtor when speaking to them, but instead be polite but firm.

2. Send a Certified Letter
If making a phone call doesn’t work, send a certified letter to the writer of the bad check requesting repayment and informing them of the next steps you plan to take if they do not pay you. Make sure you keep a copy of the letter, along with records of any interactions between you and the check writer.

3. Hire a Professional
If you are unable to collect the money owed you through a letter, it is time to seek out the help of a bad check collection attorney. With the help of a lawyer, you can sue the check writer for as much as double the check amount, up to $500.

The law firm of Howe & Associates represents creditors in the collection of bad checks. We can work on your behalf to assist you in the process of collecting your funds, as well as the statutory penalties covering the bad checks.