Legal Definitions - bad check

Definition: A check that is not honored because the account either contains insufficient funds or does not exist.

Examples:

• John wrote a check for $500, but there was only $100 in his account. The check bounced, and the store charged him a fee for the bad check.
• Susan tried to pay her rent with a check, but her account had been closed. Her landlord received a bad check notice from the bank.

Explanation: A bad check is a check that cannot be cashed because there is not enough money in the account or the account does not exist. This can happen accidentally if the person writing the check is not aware of their account balance or intentionally if they are trying to commit fraud. In either case, the person or business receiving the bad check may be charged a fee by their bank or may take legal action against the person who wrote the check.