Costly

• Bad check writing can be costly, as issuers will incur fees from their bank and from the person who received the check, plus the cost of the goods or services they accepted in exchange for the check.
  
  

Solutions

• Financial institutions offer overdraft protection to consumers as a way to avoid bouncing checks.
  
  

Warning

• Depending on state laws, bad check writing can result in civil or criminal action taken against the issuer, including fines and imprisonment.
  
  

Consequences

• Bad checks can also prevent a person from writing checks or opening a checking account. Businesses rely on databases provided by verification companies like ChexSystems, which alert them to avoid accepting checks written based on a person's negative check-writing history.
  
  

Credit

• Bad checks can also negatively affect credit scores. Credit bureaus will eventually receive reports of checks that are in collections and remain unpaid.