If she is out of money she writes a check anyway and puts it into another bank and uses the money from that are from the store she writes a check with no money in the bank and gets cash back and puts it into the account from the other check and so on its very confusing when when she was telling me this i think she has some kind of problem ive told her she can not be doing this and she says its alright it does not hurt any thing because she says she eventually gets the money from her check and pays the draft charges for going over are not having the money in the bank. can someone explain this to me.
2007-07-23 11:01:19 · 6 answers · asked by tiger 4 in Business & Finance ➔ Personal Finance
It sounds like you are describing check kiting. Not only is this illegal, it rarely works these days. The 'float' on checks is all but history. Without a delay between when a check is written and when it clears, you simply can't get away with kiting.
2007-07-23 11:39:05 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Oh yeah. Big problem. This is called check kiting and it is illegal and it will catch up to her. You owe it to your sister to explain this to her. if she won't listen, depending on how old she is, maybe you should take it to someone else in the family she respects and listens to. Not only is she wasting money on o'draft charges, she's fooling herself.
Seriously, dude, I'm proud of you for caring about your sis, but this has got to stop. It's unlikely she'll go to jail on a first offense, but the consequences are serious (big fine, community service, probation) and her credit would be screwed for quite a while. Plus she'll have a criminal record and no bank would take her as a customer.
2007-07-23 11:10:32 · answer #2 · answered by Duh 7 · 0⤊ 0⤋
This is illegal. Also tell your sister to look up and read the check 21 act. This is not going to work for her forever because of this act, and when it doesn't... She can and will get a warrant for writing a bad check if she doesn't have the money to honor it right then.
And if she is doing this because she doesn't have the money, then she will not be able to pay the check amount right then. Why even put yourself though this?
Tell your sister to look more into what she is doing. And to be more careful...
2007-07-23 16:43:18 · answer #3 · answered by prprincess 4 · 0⤊ 0⤋
The bank can get tired of it and close her account if they want.
2007-07-23 11:09:49 · answer #4 · answered by justme 6 · 0⤊ 0⤋
plus, she'd (probably) never be able to get a job in an industry where "trust" is a valued asset.
2007-07-23 11:35:00 · answer #5 · answered by Leah 4 · 0⤊ 0⤋
This is called check kiting and is illegal.
2007-07-23 11:06:42 · answer #6 · answered by oldknowitall 7 · 1⤊ 0⤋