Search Site
Menu

I Received a Bounced Check, Now What?

One question that we occasionally receive from clients is, “We received a payment from a customer and the check bounced.  What do we do now?”  While this is a situation that no business wants to find themselves in, it is one that almost every business owner will experience at least once, but more likely several times, through the life of their business.  Though each county’s rules and exact procedures will vary slightly, below are a few simple steps that you can take to help collect on a bounced check.

Step 1

Send a certified “Notice of Dishonor” to the check writer.  Texas Penal Code Sec. 31.06 lines out the language required in your Notice of Dishonor letter.  In the letter you will also want to a.) demand payment within ten days of receipt of the notice; b.) request a merchant collection fee if it is authorized by Texas Statute (Art. 9022); and c.) send a copy of the check(s) to the check writer.  You will want to retain a copy of the bounced check along with the Notice of Dishonor and certified mail return receipt.

Step 2

If the check writer does not respond within the timeframe provided, you will want to visit or call the Worthless Check Division (sometimes call Bad Check Division or Hot Check Division) of your county’s District Attorney’s office.  Often, the division will permit you to submit the required documents via the mail. The required documents that you will need to bring or submit include: a) the original check, b) a copy of the Notice of Dishonor, c) the return receipt card from the certified mail (the green card) or, if the letter was rejected, refused or not otherwise claimed you will want to bring or submit the sealed returned envelope.

Step 3

Each District Attorney’s office has a slightly different procedure in place regarding pursuing the check writer, but typically the District Attorney will send a formal demand to the check writer to pay full restitution, which will include the amount of the check, any applicable merchant collection fees and the bad check fee charged by the District Attorney.  Any check writer who fails to pay the total amount owed will be subject to criminal prosecution under Texas’ Hot Check Fee Act, provided the check meets the statutes requirements for prosecution.  It is important that you do not accept restitution from the check writer once the check has been submitted to the District Attorney’s office.

As discussed above, each District Attorney’s check collection policies will differ slightly, but generally they are designed to help you as a business owner receive restitution in the event you accept a bad check.

Eric R. Thiergood, Sr.

Phone: 281-367-1222

Fax: 281-210-1361

[email protected]

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact a Dedicated Texas Business Lawyer To Schedule a Consultation
Call 281-367-1222 or contact us online to schedule a meeting.

Strong In Action

  • Spring 2021

    The Strong Firm prevails in dispositive motion regarding Texas economic loss rule resulting in dismissal of claims again party.

    Read More
  • Spring 2019

    The Strong Firm successfully forecloses first priority lien against multi-million dollar commercial asset.

    Read More
  • Spring 2021

    The Strong Firm secures writ of reentry after unlawful lockout of commercial tenant.

    Read More
  • Spring 2021

    The Strong Firm prevails in writ of mandamus proceeding involving denial of temporary restraining order to stop foreclosure sale.

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
  • Peer Rated 2022 Award
  • Clio Client-Centered Certification

Recent Blog Posts

The Future of Non-Compete Agreements: Executive Order on Promoting Competition in the American Agreement

In July 2021, President Biden signed an Executive Order aiming to limit the use of restrictive covenants in employment relationships. Opening with the premise that “a fair, open, and competitive marketplace has long been a cornerstone of the American economy, while excessive market concentration threatens basic economic liberties, democratic accountability,
Read More
The Future of Non-Compete Agreements: Executive Order on Promoting Competition in the American Agreement

Estate Planning: A Sophisticated Plan for Complexities

More sophisticated estate planning may be appropriate for people that: have sufficient net worth to consider tax planning; own assets in more than one state or jurisdiction; highly prize privacy; have blended families, and/or have a history of family discord (“Complicating Factors”). In 2022, the net amount a person can have
Read More
Estate Planning: A Sophisticated Plan for Complexities

Estate Planning: A Plan for Everyone

A common misconception is that estate planning is for the wealthy, with an abundance of assets, including retirement plans, life insurance and annuities. However, the truth is that everyone over the age of 18, regardless of wealth, socioeconomic class or marital status should have a basic estate plan designed for
Read More
Estate Planning: A Plan for Everyone

The Strong Firm P.C. Presents The Ice Rink At The Woodlands Town Center – VIP Preview Party – Thursday, November 18, 2021 – 6 PM-9PM CST

  Please join The Strong Firm P.C. at the exclusive VIP Preview Party for The Ice Rink at The Woodlands Town Center presented by Woodforest National Bank for the 2021-2022 Holiday Season! This year all proceeds from ticket sales and any additional collected donations will go 100% to YES to YOUTH - Montgomery County Youth Services! Donation receipts will be
Read More
The Strong Firm P.C. Presents The Ice Rink At The Woodlands Town Center – VIP Preview Party – Thursday, November 18, 2021 – 6 PM-9PM CST
  • Video Vault


    Watch videos done by our legal team to gain a better understanding of your legal needs. Our lawyers give video insight into areas such as Real Estate, Business Law, Mergers & Acquisitions and much more.
Contact us

Quick Contact Form