What Happens in Georgia for Writing a Bad Check?
Bouncing a check in Georgia can result in both criminal charges and a civil lawsuit against the check writer. Those who receive bad checks can receive compensation, but must first attempt to collect the check on their own before filing a police report or a court case.
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Criminal Consequences
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Writing a bad check in Georgia is a crime. If the value of a check is $499.99 or less, the crime is a misdemeanor. Bouncing a check for $500 or more is a felony. Misdemeanor bad check writing can result in fines ranging from $500 to $1,000 and imprisonment for up to 12 months. Felony cases can force a bad check writer to pay fines ranging from $500 to $5,000 and spend up to three years in prison.
Civil Penalties
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Someone who receives a bad check can sue the check writer for the value of the check, bank and legal fees as well as a service charge of $30 or 5 percent of the check's value, whichever is more. The plaintiff can also sue for additional damages equal to twice the check's value, although these damages can be no more than $500.
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Collection Requirements
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Before a recipient of a bad check can involve the criminal or civil court system in the collection of the check, she must take steps to collect the check on her own. Georgia law requires the recipient to send a letter via certified or registered mail to the check writer. In the letter, the recipient must inform the check writer that the check bounced and that the check writer has 10 days from receiving the letter to repay the recipient the value of the check as well as any legally allowed service charges. If a check recipient fails to make this collection attempt, she won't be able to pursue criminal or civil remedies against the bad check writer.
Diversion Programs
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Some counties in Georgia, such as Cobb County, offer bad check diversion programs. The purpose of these programs is to help victims of bad check writers claim what they are owed while keeping the check writers out of the criminal justice system. Each program has its own policies and procedures, but a first-time bad check writer may receive a letter from the county sheriff ordering him to appear at the sheriff's office and to make restitution. If the check writer complies with the program, he can avoid criminal prosecution.
Bank Consequences
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Banks usually charge fees for every bounced check. Repeatedly writing bad checks can force a bank to close the account and report the account holder to banking consumer report bureaus. Once this happens, other banks will have access to the account holder's banking history and may refuse to allow that person to open a new account. Negative information can stay on a banking consumer report for up to five years.
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