Banking

What happens when a check bounces?

When a check bounces, several things can happen. 

First, the bank is going to charge a fee for overdrafting the account.  As long as the account holder deposits more money into the account, no action will be taken by the bank.  However, if the account holder does not deposit money in the account, the bank may sue the account holder for the money that the account holder owes the bank.  Also, the bank would report this to the credit bureau and it would damage the account holder's credit score. 

Second, if the person wrote the check with the intent to defraud, then that would be a crime.  SC Code 34-11-60.  The intent to defraud would be if the person who wrote the check knew that there wasn't enough money in the account and they wrote the check on purpose. 

If the person who wrote the check pays the amount owed, that person will not be prosecuted.  So, for the most part, as long as the bank gets its money, nobody is going to jail. 

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