Trouble is I have no funds available and am already over my limit.
What can my bank do about this, and is this technically fraud?
2006-10-19 01:37:08 · 24 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Not fraud, but the cheques will bounce, you'll be charged a fee by the bank and the payee's will be pi$$ed off! Nothing will really happen but it will cost you a lot of money!
2006-10-19 01:38:48 · answer #1 · answered by e404pnf 3 · 0⤊ 1⤋
Your checks will go back to the bank, and there will be no money in the bank. The bank will stamp NSF on your checks (non-sufficient funds). The bank will deduct $35.00 from your already negative bank account, putting you way, way into the negative. If you do not pay the bank its fees in a timely manner, the bank will close your account. The checks will go back to the merchant to whom you wrote them. The merchants will most likely write you a letter. Some still try to call. If you do not pay them the money you owe them, plus their $25 check fee, in a month's time, they will send your check to the District Attny's office. You will get a letter from the DA. You have approx. a month to pay. (often, minus the $25. merchant's fee that the store tacked on). If you don't pay the DA, there will be a warrent for your arrest. They won't actually come to get you. One day, you will be driving down a street, and, maybe, your tail light will have burned out.... and that is when you will get handcuffed and sent to jail. The ugly world of bad checks--you really want to pay more attention to funds available and never write a fraudulent check again.
2006-10-19 08:55:11 · answer #2 · answered by mad_madison_maiden_x 4 · 0⤊ 0⤋
Yes, technically it is fraud but unless one of the payees want's to sue you it won't go that far. If you check the original termas and conditions of your bank acccount you will find one of the clauses you agreed to was not to write cheques when you knowingly have no funds available for that cheque to be cleared. Bank would be severely upset with you if it wasn't for the fact that they would rather have the charges money.
2006-10-19 08:50:52 · answer #3 · answered by des10euk 2 · 0⤊ 0⤋
firstly, they can bounce your cheques and charge you for this, or pay them, let you go even more overdrawn and charge you mega bucks for the privilege. I am not sure if this is technically fraud because you are not trying to do anything that the bank don't know about. But don't quote me on that. Your best bet is to contact them immediately and try and get an overdraft, that way you wont end up with loads of charges.
2006-10-19 08:53:50 · answer #4 · answered by Agnes B 2 · 0⤊ 0⤋
Yes it is fraud.
If you backed the cheques with your guarantee card they will be paid rather than bounced but you will be charged either way.
As you are over your limit (and if this is not uncommon) the bank can ask you to return your chequebook and Card (they are owned by the bank and are only loaned to you) - if you keep issuing cheques backed by your guarantee card the bank will send Baliffs to collect your card.
Meanwhile your credit rating will be diving through the floor!
Ultimately the bank could issue a demand for all monies owed to be repaid in full, usually within 7 days, failure to do passes the debt to a debt collection agency and will result in an entry on your credit reference file similar to a CCJ.
If you haven't got it don't spend it!
2006-10-19 08:57:31 · answer #5 · answered by phooey 4 · 1⤊ 0⤋
Yes it's illegal to issue cheques in the knowledge that you haven't got the funds to clear them.
In reality if its a small amount that the bank are comfortable with, they may honour the cheques and charge you huge charges and interest for going overdrawn.
If its a large amount that they're not comfortable with, they will bounce the cheques and charge you a huge charge for bouncing a cheque.
but technically, yes it's illegal to have issued the cheques,
2006-10-19 08:48:31 · answer #6 · answered by mainwoolly 6 · 0⤊ 0⤋
Your bank will reject the cheques as NSF (insufficient funds). You will be charges a fee for each cheque that could not clear. The cheques will be sent to the people you wrote them to and they will be able to put you into collection. This is fraud.
2006-10-19 08:45:48 · answer #7 · answered by Gone fishin' 7 · 0⤊ 0⤋
No it's not Fraud!
The bank may refuse to Honor the Amount on The cheques and Bounce them(That would mean you get Charged for Unauthorized Use).
Best Option would be to Go to Your bank and Tell them your situation-They sometimes will offer a Debt conciliation service to help you over come (Long or Short term) Debt!
But Go see them!
2006-10-19 08:40:04 · answer #8 · answered by J. Charles 6 · 0⤊ 1⤋
Cheques will bounce, you will be charged more for the 'paperwork' and yes it is forbidden to write a cheque knowing you have no funds - whether or not fraud I couldn't say, but suspect so.
2006-10-19 08:39:30 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Technically it is fraud.
The bank will make charges on your account for the rejected cheques, making you even more overdrawn.
The people you paid the cheques to, they could take you to court for obtaining goods/services by deception.
2006-10-19 08:46:09 · answer #10 · answered by Anonymous · 0⤊ 0⤋