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Will a bank penalize me for an accidental overdraft?

On Behalf of | Aug 7, 2019 | Theft |

Financial transactions are so commonplace that many people do not consider that a check they receive might be bad. Bad checks occur when there is not enough money in the account to cover them. If you unintentionally deposit a bad check into your California checking account, you could end up later on writing a check for money that you do not have. This can cause your bank to take action against you.

According to Bankrate, if you unknowingly deposit a bad check and then write a check that causes an overdraft in your account, your bank will still hold you accountable for the overdraft amount. Clearing matters up with your bank is imperative because a bank can go as far as close your account on the grounds of account abuse and even pass that information on to other banks that you try to open an account with.

As for the party that wrote the bad check, you can contact them to request that they pay you the money that they owe you. The bad check may have been an accident. In the event the other party refuses to pay you, other options exist. You may have a criminal case of fraud and can contact a state prosecutor’s office in your county. At this stage, whether you plan to pursue the matter in civil court or criminally, you would likely need an attorney to represent you.

No matter the circumstances, being caught in this situation can open you up to charges of fraud, or possibly put your reputation at risk with other financial institutions, if you accidentally create an overdraft due to someone else committing fraud against you. If another party has defrauded you and put your finances at risk, asking a professional attorney for assistance can help you understand your rights and how to protect your reputation.

This article is written for informative value on the topic of crimes and is not to be interpreted as legal advice.