Did you know? Dishonored checks come with a lot of baggage.

It happens — someone writes a check that doesn’t clear. But under New Jersey’s Dishonored Check Law (N.J.S.A. 2A:32A-1 et seq.), a bounced check can lead to much more than just embarrassment. It can result in triple damages, legal fees, and even criminal exposure if not handled properly.

Here’s how it works:

If you receive a bad check, you can demand payment using a specific written notice — often called the 35-day notice — sent by certified mail to the check writer. If the check isn’t made good within 35 days, you may file a civil claim for damages.

The law allows you to recover:

·         The full amount of the check, plus

·         The greater of $100 or triple the amount of the check (up to $500 more than the face value), and

·         Court costs and reasonable attorney’s fees.

For example, if you’re owed $2,000 and the check bounces, you could recover up to $6,500 total — provided you followed the notice procedure.

If you’re the one who wrote the check, failing to make good on a dishonored check after receiving a demand notice can lead to a civil judgment — and in some cases, criminal charges under NJ’s bad check statute (N.J.S.A. 2C:21-5). Banks report dishonored checks, and repeat offenses can have lasting consequences for your credit and business reputation.

Bottom line:

If you receive a dishonored check, don’t just deposit it again and hope for the best — follow the proper legal notice process. And if you accidentally bounce one, act quickly to fix it before it escalates into something much bigger.