Penalty for Writing Bad Checks in Texas

The consequences of writing a bad check can be serious.

Most forms of payment, perhaps excluding cash, come with rules and regulations. For example, credit card companies add interest and enforce payment deadlines. Writing a check carries its own risks, particularly when there aren't sufficient funds to cover the amount. The penalties for writing bad checks in Texas vary according to different factors.

Types

All check fraud is punishable by law. According to the National Check Fraud Center, the types of check fraud include forgery, counterfeiting, paper hanging and check kiting.

Forgery

Forgery involves endorsing a check and presenting the check for payment using false identification. Forgery often occurs in banks and in retail stores.

Counterfeiting

Counterfeiting refers to using computers and other equipment to produce fake checks. Sometimes, criminals will also use photocopiers to duplicate checks. A more advanced type of counterfeiting is called alteration. Alteration involves using chemicals to modify check information. Check-washing refers to the process of erasing information from the entire check.

Paperhanging

Paperhanging describes a situation in which a person writes a check on a closed bank account and reorders checks on a closed account.

Check Kiting

Check kiting occurs when a person opens accounts at two or more banks and uses the time it takes a check to clear to create fake balances.

Penalties in Texas

Committing check fraud in Texas is considered a criminal offense. According to The Law Offices of RJ Atkinson LLC, in Texas it is a misdemeanor to write a bad check for under $50. Writing a bad check for more than $50 is a felony. Penalties start with jail time up to two years and $1,000 fines. Penalties may be as severe as up to 10 years in jail. The holder of the bad check can also charge the criminal with processing fees.

References

• National Check Fraud Center
• The Law Offices of RJ Atkinson LLC

Resources

• Texas Penal Code
• National Check Fraud Center