Bounced Check Law in Minnesota State

Minnesota provides remedies for recipients of bad checks.

State laws protect recipients of bad checks in Minnesota. There are remedies for the receiver of a bad check under Minnesota law when someone issues a check without sufficient money in his account. When someone writes a check for services or a product without money available to cover the cost, recipients suffer damages such as bank fees.

Definition of Bad Checks

A dishonored check is one written without funds available in a bank account to cover the amount on the check. In Minnesota, when a check issuer stops payment on a check for good reason, the law does not consider it a dishonored check. Issuers who put a stop payment on a check when there are insufficient funds in the account to cover the check at the time it was issued are guilty of passing a dishonored check. The Minnesota law considers a bad check is one drawn on a closed account or nonexistent account.

Demand Letter

Minnesota law in 2011 requires the holder of a bad check to send a demand letter to the issuer. The notification must cite the law and describe the penalties the issuer of the dishonored check may face. The holder of the bad check must send the demand letter by certified mail with a return receipt or by regular mail with an affidavit of service. Holders of a bad check may charge the issuer a service fee up to $30.

Civil Penalties

An issuer of a bad check may face civil and criminal penalties. Issuers of bad checks may pay a penalty of $100 or the amount of the check, whichever amount is larger, according to Minnesota statute 604.113. Issuers must pay the penalty in addition to the amount of the check, a service charge and interest on the check amount. For checks over $1,250, the issuer may be charged attorney's fees as well.

Criminal Penalties

The criminal penalties for a bad check in Minnesota depend on the amount of the check. For checks less than $250, the penalty is $1,000 in fines and up to 90 days in jail. Checks greater than $250 and less than $500 result in fines of $3,000 and up to a year in jail. Bad checks written for over $500 can result in a fine of $10,000 and up to five years in jail. The court may also order the issuer to pay restitution for the dishonored check.

References

• Minnesota Office of the Revisor of Statutes: 2010 Minnesota Statutes 604.113 Issuance of Worthless Check
• Minnesota Office of the Revisor of Statutes: 2010 Minnesota Statutes 609.535 Issuance of Dishonored Checks