What are the consequences of not paying for returned checks in Texas?

Full question:

What can happen to me if I don't pay for returned checks under $500 and also over $500 to $1000 dollars?

• Category: Banking laws
• Date: 04/07/2025
• State: Texas

Answer:

In Texas, issuing a check without sufficient funds can lead to legal consequences. According to Texas law (Tex. Penal Code § 32.41), a person commits an offense if they pass a check knowing they lack the necessary funds in their bank account to cover it.

If a check is returned due to insufficient funds, the issuer is presumed to know about the insufficient funds unless they can prove otherwise (like if the check was postdated). The presumption applies if:

• They had no account with the bank when the check was issued, or
• The bank refused payment due to insufficient funds within thirty days of the check being issued, and the issuer did not pay the holder within ten days of receiving notice.

Notice can be given through various means, including registered mail or first-class mail if returned as undeliverable. The notice must inform the issuer that failure to pay within ten days may lead to criminal prosecution.

For checks under $500, the offense is typically a Class C misdemeanor. If the check is for child support, it escalates to a Class B misdemeanor. Restitution for the bad check can be made through the prosecutor's office or the court, depending on how the case was initiated.