Legal Question in Business Law in California

Re: Displaying NSF Check

Such display puts you at risk. Call the police and file charges for NSF.

Re: Displaying NSF Check

I am unaware of any specific California law that prohibits this practice, but I am aware of cases in other states where the merchant has been held liable for invasion of privacy under similar circumstances. I have seen this type of display before and I doubt that merchants have really gain much besides the satisfaction of revenge.

The check will contain the account number and address of the check writer. In this day and age, it is very possible the a court could find the merchant liable if the display of a dishonored check lead to identity theft or some other financial loss to the person who wrote the bad check.

If the debtor filed for bankruptcy, continuing to display the check could be considered an effort to collect the debt and a violation of the automatic stay or the discharge order.

California Civil Code Section 1719 allows a merchant to collect treble damages on a bounced check of up to $1500. Filing a smalls claims lawsuit and obtaining judgment against the bad check writer will place the judgment on their credit and this will be far more effective in helping you get your money than trying to publicly shame the debtor.

Re: Displaying NSF Check

The initial satisfaction you may receive by publicly displaying the check is not worth the risk of being held liable for invasion of privacy.

If your business is not incorporated, your personal assets may also be at risk if you are held liable.

If you need assistance to incorporate, feel free to contact me.