“How was I supposed to know my wife took out $300.00 and forgot to tell me? I’m sorry but I just cannot make that check I wrote you good right now.” Have you ever had to say something like this? Have you ever bounced a check? Well, it’s a costly mistake to be sure, but it helps to know the bounced check collection laws in your state if you can’t cure the problem right away. Although they vary widely from state to state, most laws are set up to protect the payee. Unfortunately, that’s not you in this situation.

There are also companies that are employed these days to obtain this collection who actually make money when your debt is settled. The creditor may pay a little for this service, but trust me when I tell you, you will pay a lot.

The bounced check collection laws usually provide protection to individuals from private collection agencies threatening imprisonment for bad debt. Although it is possible to be arrested in many states for bad debts, the bounced check collection laws require that plans for prosecution in a court action must be in place before threats of sending an individual to jail can be made. It is commonplace, however, for collection agencies to report your indiscretion to the credit reporting bureaus. If and when you settle your debt, and believe me quicker is better, you will want to save all supporting documentation (most importantly evidence that payment has been accepted in full) and send it to the three major credit bureaus. They are Equifax in Atlanta, GA, Experian in Allen, TX and TransUnion in Chester, PA. Most people don’t realize that written evidence of payment is required before a credit bureau will show your debt resolved.

One of the most lenient of the bounced check collection laws is that there is no protection from collection attempt if the check may have been written by a spouse or joint account holder. If your name is on that account, you are jointly liable for the debt in most states. This has happened many times in divorce situations and can be devastating to your credit report. Keep a watchful eye on your household expenditures and cure any mistakes that might occur as rapidly as possible.