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Home >> Checks/Money Orders >> Checks You Wrote
NSF Check; Who is Responsible?
If I wrote a check out and my funds weren't all there and the person cashed the check and it comes back on my account as a returned item, what happens from that point? Does the other person get affected or me?
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 If you write a check to John Doe and he deposits it in his account, the check gets presented to your bank for payment. If you don't have enough money in your account to cover the check, your bank must decide whether it will pay the check, leaving an overdrawn balance in your account, or return it. In either event, your bank is likely to charge you a fee.
If the bank pays your check, John Doe isn't affected. He gets his money and knows nothing about your deficient balance. If your bank refuses to pay your check, it gets sent back to John Doe's bank, where that bank charges it back to his account, and may add a fee. In that case, you still owe him the amount of the check and maybe a fee, if he's a business.
Published on BankingQuestions.com 1/16/09
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