If you do not have enough money in your Plano bank account to cover a check you write, the check is going to bounce, meaning it will come back to you. Bounced checks can be a big problem with financial and possibly even legal consequences, yet nowadays it seems harder to avoid writing one. There are a number of reasons why someone might accidentally write a bad check.
Credit.com explains that the rise in bad checks is due in part to electronic check clearing. In the past, banks needed a few days to clear a check. However, with electronic clearing, a bank accepts a digital substitute for a check and can process it within hours instead of days. With this added movement of money, there are more opportunities for a check to bounce.
Bounced checks can happen for many reasons. An account holder may write a check and, while not possessing enough money to cover it now, intends to get to the bank with a deposit to cover the check before the check is cleared. However, electronic clearing expedites the clearing process and reduces the time it takes for a check to clear, leaving the account holder with less time to cover the check.
Sometimes bad checks occur because of mistakes at home. You might not regularly balance your checkbook, or you could neglect to enter in your automatic withdrawals into your checkbook, making you think you have a greater balance in your account. And if you have a debit card, there are more occasions for money to be depleted from your bank account. Your spouse or relative may use the card and forget to inform you. Worse, a thief might get a hold of your debit card numbers and siphon money from your account.
You can also write a bad check because of mistakes made by your bank. Some banks or credit unions might make a mistake in showing your account balance. You could also misjudge your account balance if it includes overdraft protection. In some instances, someone may write you a bad check. If you deposit it and it bounces, you may end up writing a bounced check because you think you successfully deposited money from the bounced check.
Bounced checks can cause serious problems, including bringing down your credit rating, costing you employment, and they may even cause you to be arrested. Many people write bounced checks without intending to, so asking a criminal defense attorney for assistance can help you understand your options. This article is for informative purposes only, not legal advice.