"What to do if that check you received keeps bouncing?"

By Alan L. Fishbein, Esquire

Now that the NBA season appears to be at a stalemate with no sound of bouncing basketballs on the horizon, what can a business person do who receives a bouncing check instead? Sooner or later all business persons will encounter the situation where they are given a "bounced" or insufficient funds check. The options in Maryland are two-fold. It is a crime under the Maryland criminal law to obtain goods or services with a check knowing that there are insufficient funds to cover the check. One of the options that is open to a person who receives a bad check is to pursue criminal prosecution of the person who tendered the check by filing a complaint with the Commissioner of the District Court. However, the filing of a criminal charge may not necessarily result in the recipient of the check receiving payment. In order to constitute a crime in Maryland the check must be given simultaneously in exchange for the goods or services. Thus providing an insufficient check on a date after the goods or services have been provided is not a criminal offense in Maryland. The Office of the State's Attorney prosecutes crimes but it is not a collection agency for people who have received a bad check.

A second alternative is to pursue a civil remedy, i.e. an action for damages, against the person who issued the cheek. The Maryland Commercial Law Article Section 15-803 sets out the notice requirements that must be given to a person who issues a bad check. The notice must be sent by certified mail and it must provide thirty (30) days notice to the issuer of the check to satisfy the obligation. The notice must further inform the issuer of the bad check that if the check is not made good within thirty (30) days that the issuer of the check may be liable for the amount of the bad check, a collection fee of $25.00 and a penalty of up to two times the amount of the check but not more than $1,000.00 in total penalties. In addition, the notice must advise the issuer of the check that they may be prosecuted pursuant to the Maryland criminal law. It should be noted that it is a defense if the check was dishonored because of a "justifiable stop order" or because the bank account had been previously attached by another creditor. It is imperative that the notice be properly given or the party seeking restitution will not be entitled to the collection fee and penalty described above.

After the notice has been given and the period of the thirty (30) days has expired, the recipient of the bad check can file suit in the District Court for checks up to $25,000.00 and in the Circuit Court for checks over $25,000.00. Thereafter, the lawsuit proceeds like any other District Court or Circuit Court case.

Thus, while it is frustrating to receive a bad check, especially when one has already provided the goods and services in exchange for the check, Maryland does provide sufficient remedies to recover a judgment against the issuer of the bad check as an alternative to criminal prosecution.

Now that we know how to get the person who bounces checks into court, what can we do to get the multi-millionaire basketball players and billionaire owners to bounce basketballs in their courts.