What is the penalty if you send in a bad check for a loan payoff?

Answer by  patti (29325)

The legal penalty for a "bad check" is determined by the state in which it is written. The lender to whom a bad check is written can file a criminal complaint, depending on the amount of the check and assess additional fees and charges to the loan, depending on the contract of the loan.

Answer by  tamarawilhite (17883)

First, the loan payoff will not be accepted, and you will either be in default or late charges on the loan payment that was due. Secondly, you risk bounced check fees for the bank, which is in addition to bad check fees charged by the lender. Criminal charges are possible if this is a repeat occurrence.

Answer by  withsmluck (793)

A bad check can carry a civil or criminal penalty. Civil penalties vary by state and by check amount. Criminal penalties, also, vary by state and amount, and include not only a fine, but possible jail time in some states. The larger the check amount, the more severe the penalty whether it is a fine or jail time, or both.

Answer by  Chaneygirl (1755)

You will need to check with your loan/mortgage company to see what fees they charge. They can submit the check more than once and incur fees each time. If you knowingly sent a bad check, you may want to consult an attorney in your state.