Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Feb 10, 2011

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Posting a bad check at the counter for all customers to see is legal. Telling others about the bounced check is also legal because the information is considered to be factual and provable.

If a business owner receives a bad check, they have the right to immediately begin the debt collection process, and in the case of a bounced check, seek criminal liability as well. During the debt collection phase, the business owner can display the bounced check for the public to see. This is permissible because it allows customers the chance to identify and contact the debtor if they know them. In addition, the business may blacklist that particular customer, requiring that if they wish to continue to be a patron, they must use an alternative means of payment.

Business owners may also report the bad check to bad check writing databases such as Check Connection, Shared Check Authorization Network, Telecheck, or ChexSystem. These databases offer writer verification to businesses that accept checks. If a customer’s name comes up in the system, other businesses may also deny their checks.

On the criminal side, the business owner may contact the police and file a complaint about the bounced check. Writing a check without knowingly having the available funds is fraud. Most states consider this a misdemeanor and will charge a fee around $200 for first offenses. Some states, such as California, also impose a jail sentence for up to one year if the act is found to be intentional. Other states, such as Florida, consider writing a bounced check a felony and have very harsh penalties for even the first intentional offense.

However, in any state, a business owner cannot advertise the account number or any other personal information about the individual outside of their store. Advertising the account number on the bounced check would constitute a breach of privacy for the individual.