Criminal Illinois Penalties For Writing Bad Checks

Receivables Training Academy

Criminal Illinois Penalties: Up to $500 fine or up to one year in jail, or both. Civil Illinois Penalties: Treble amount of check but not less than $100 nor more than $500 plus attorney's fees and court costs.

Section 3-104(2)(b) of the UCC, defines a check as "a draft drawn on a bank and payable on demand." A postdated check, since it is not payable on demand, does not satisfy this demand.
Consequently, it has generally been held by most states that the giving of a post-dated check does not constitute a present fraud nor is it within the scope of the bad check laws.

In most cases, NSF checks are not considered under the bad check law if they are used to pay an antecedent debt. Therefore, if a debtor gives a debtor an NSF check to pay a note payment or to pay an invoice that is on account, the act generally does not fall within the bad check law. However, if the debtor provides a creditor with a NSF check for a COD order, then that act does fall within the bad check laws.

Bad checks, also known as NSF checks, bounced checks, rubber checks, insufficient checks, bogus checks, etc., can be a big problem for an individual or for any size company. There are both civil and criminal penalties for this unlawful act, although it is much more costly and difficult to prove a criminal case. Always consider your goal: to recover the money or punish the check writer?

Any person who issues a bad check in the state of Illinois because the drawer does not have an account with the drawee, or because the drawer does not have sufficient funds in his account may be liable, in addition to the amount of the check, for the sum of $25.00, or for all costs and expenses, including attorney fees, whichever is greater, plus interest.  To be eligible for any costs and expenses in excess of $25.00 in a non-litigated collection action against the issuer of a bad check, a person undertaking such action must make a written demand by certified mail, return receipt requested, delivered to the last known address of the issuer of the bad check.  The written demand must include a demand for payment within thirty (30) days of the mailing of the demand and a notice of liability for the costs and expenses.  (810 ILCS 5/3-806)  Any person may pursue a cause of action against the issuer in the state of Illinois of a bad check in small claims court or any other appropriate court.  If the issuer of a bad check fails to make payment within thirty (30) days following delivery or acceptance by the addressee of a written demand by both certified mail and by first class mail to his last known address, or attempted delivery thereof and the demand by certified mail is returned to the sender marked "refused" or "unclaimed", he may be liable, in addition to the amount of the bad check, damages of treble the amount so owing, but in no case less than $100 nor more than $1,500, plus attorney fees and costs.  (720 ILCS 5/17-1a) (810 ILCS 5/3‑806) (from Ch. 26, par. 3‑806)     Sec. 3‑806. Any person who issues a check or  other draft that is not honored upon presentment  because the drawer does not have an account with  the drawee, or because the drawer does not have  sufficient funds in his account, or because the  drawer does not have sufficient credit with the  drawee, shall be liable in the amount of $25, or for all costs and expenses, including reasonable  attorney's fees, incurred by any person in connection  with the collection of the amount for which the  check or other draft was written, whichever is greater,  and shall be liable for interest upon the amount of  the check or other draft at the rate provided in  subsection (1) of Section 4 of the Interest Act.  Costs and expenses shall include reasonable costs  and expenses incurred in the non-litigated collection  of the check or other draft.     A person who undertakes a non-litigated collection against the person who issued a check or other draft that  is not honored upon presentment shall make a written  demand by certified mail, return receipt requested,  delivered to the last known address of that person in  order to become eligible for any costs and expenses in  excess of $25. The written demand shall demand payment  within 30 days of the mailing of the demand and shall  include notice of liability for the costs and expenses.     A fee or charge not to exceed $4.50 may be assessed  to any person or owner of a commercial checking account  or other similar commercial account where a check or other  draft that is deposited into the account is dishonored  upon presentment because of insufficient funds or because the drawer does not have an account with the drawee;  provided, however, that, the limitation on the fee or  charge specified in this paragraph does not apply to any fee or charge assessed to any bank or other depository  institution or to any non‑commercial checking account  or other similar non‑commercial account.