Bad Check Program
In most instances, writing a cold check is a crime pursuant to KRS 514.040 – Theft By Deception. Specifically, a “person is guilty of theft by deception when the person obtains property or services of another by deception with intent to deprive the person thereof. . . . A person deceives when the person intentionally issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee.”
For purposes of this statute, it must be the persons INTENT to defraud the individual. In instances where the person attempting to criminally prosecute the defendant, the check must not have been accepted with the terms that the check shall not be attempted to be collected until a specified day where the defendant believes the funds will be sufficient.
Bad Checks are a problem that all businesses in Campbell County must confront. Collecting on bad checks are a problem for most businesses because of the time and cost involved outweigh the benefit of having the debt paid. However, the Campbell County Attorney’s Office is here to help.
What Checks Qualify for the Bad Check Program?
Checks that have been stamped by the bank stating: Account Closed, No Account, Unable to Locate, and Nonsufficient Funds.
For checks stating Refer to Maker, Held Funds, Overdraft, Uncollected Funds Hold, No Debts Allowed, and Unavailable Funds. For these checks, you must have a statement form the bank showing the status of the account on the date the check was issued.
Checks must have a bank stamp showing presentation to the bank within 30 days of the issue date on the check.
Prosecution of check writers should begin as soon as possible after the check was issues.
The statute of limitations is one (1) year for checks under $500 and is considered a misdemeanor. However, checks over $500 are felonies and do not have a statute of limitations.
What Checks DO NOT Qualify for the Bad Check Program?
Post-dated or held checks
Two-party checks, stop-payment checks (unless merchant holds a bingo license)
Checks where both parties knew there were insufficient funds at the time of the transaction.
Check was issued as payment on a loan, as part of an agreement to pay or an open account.
The identity of the check writer is not known.
There is no amount or signature on the check.
The check comes from a Frozen or Blocked account(s)
Checks where the address is a P.O. Box
Checks written on corporate/business accounts (Unless you provide verification from the Secretary of State's Office that the person who signed the check had the authority to do so).
Rent Checks: UNLESS you give possession of the property in exchange for the check, by way of the keys or first month’s rent, or the check was written in response to a threat of eviction. In all other circumstances the rent check is considered as payment on an account and is civil in nature.
Why use the County Attorney’s Office to collect your bad checks?
There is no cost to you.
We collect the face amount of the check, but we also collect an additional merchant fee of $50 for you for each check.
Only this Office can criminally prosecute bad check writers. Collection agencies and check service companies can not use the criminal court system to collect checks.
As a law enforcement agency, our data bases are more extensive and current than check collection agencies and check service companies’ resources.
How the Bad Check Program Works
If you are unable to collect on a bad check someone gives you, you may:
Bring the check to the Campbell County Attorney’s Office at 319 York Street, Newport, Kentucky, between the hours of 9:00 a.m. and 4:00 p.m., Monday through Friday and we will attempt to collect on that check for you.
You should have a valid street address and be able to identify the maker of the check.
If we issue criminal charges, the Sheriff cannot serve the defendant at a P. O. Box address.
If criminal charges are necessary, we will need a date of birth, social security number, or driver’s license number for the Defendant.
After you come to our office, we will then send a letter notifying the party that they have ten (10) days within which to make the check good.
The writer of the check will receive a letter from our office along with instructions to pay online, by mail or by phone.
Payments that are collected and deposited to that account are mailed to merchants on two designated days each month.
As of February 1, 2009, the bad check fees for the county attorney’s office are $50.00 per check which is charged to the Defendant.
If the individual does not make the check good within ten (10) days, our office will call the merchant to come in to sign criminal charges for THEFT BY DECEPTION.
Once the criminal complaint is signed, the defendant will receive a summons to appear in Court.
You will not need to be present for the arraignment.
If the person pleads guilty at the arraignment, the court will make sure that the defendant is required to pay off the bad check.
If the defendant pleads not guilty, the case will be set for a trial and you will likely be subpoenaed. Rarely, a trial is ever necessary.
We encourage you to bring bad checks to our office as soon as possible after your efforts to collect. The sooner we pursue collection, the better the results. You should not use this service if someone stops payment on a check to you because of a dispute over the quality or quantity of work done for you. We will not issue criminal charges for this type of civil dispute.
We presently handle hundreds of bad check cases every month for many businesses and individuals in Campbell County. We encourage those not presently using this service to begin doing so. As mentioned above, this is a free service provided by this office so that you can receive payment on your bad checks.
How can you protect yourself from cold checks?
Identification, identification, identification!
Always ask for official photo identification; (e.g., a license). Compare the official photo with the person presenting the check. Write down pertinent information correct address, birth date, operator’s license number, phone number.
Never accept a counter check. Maker sure that the check has an imprinted address consistent with that on the identification. Also, note if there is a date on the check that the account was opened.
Compare the signature on the identification to that of the check writer.
Never accept a check with only an imprinted post office number as the address. (Write the address on the ID). Since people do not live at P.O. Boxes, legal papers cannot be served at a P.O. Box.
If you have reservations about accepting a check, verify the check with the bank it is drawn on. You are under no obligation to accept a check. If is your prerogative.
Do not allow the check writer to put his information on the check. It should be done by you, the merchant, for verification.