Texas Law on Returned-Check Fees

Writing a bad check constitutes fraud in Texas.

In Texas, writing a bad check is considered fraud under the state penal code. A bad check is a check written against a non-existent bank account, or one with insufficient funds to cover the check's value.

Law

The law regarding bad checks in Texas is contained in the Texas Penal Code, Title 7 (Offenses Against Property), Section 32 (Fraud), Sub-Section 41 (Issuance of a Bad Check). Under Texas law, the receiver of a bad check must immediately notify the writer by certified mail with the following statement:

"This is a demand for payment in full for a check or order not paid because of a lack of funds or insufficient funds. If you fail to make payment in full within 10 days after the date of receipt of this notice, the failure to pay creates a presumption for committing an offense, and this matter may be referred for criminal prosecution."

Fees

Texas law does not mandate any fees for the issuance of a bad check if restitution is made within 10 days. If the holder pursues criminal prosecution, legal and court fees will be incurred. The court may order the defendant to pay any bank, legal, or court fees the injured party incurs.

Criminal Prosecution

Failure to make restitution for a bad check within 10 days can result in criminal prosecution.

References

• Texas Penal Code: 7.32.41 - Issuance of a Bad Check