Legal Question in Credit and Debt Law in Wisconsin
Bad Check Collection
A bad check I wrote was turned over to a collection agency. Since that has been done, the store I wrote the check to has resubmitted it to my bank and recieved payment for it. The collection agency is still trying to collect for it. I am not about to pay for the check twice but would like to know if I still have a legal obligation to pay the returned check fee even though the check is no longer "returned"?
1 Answer from Attorneys
Re: Bad Check Collection
Wisconsin law does provide for punitive or
exemplary damages of $300 and greater for the
issuance of a worthless check, plus actual
reasonable attorney fees of the creditor. There
is even a strong argument that such damages are
not dischargeable in bankruptcy. Only a judge
can truly decide whether or not you are liable.
Unfortunately, it may cost substantially more
than the amount at stake to litigate the issue.
It is therefore generally in your best interest
to negotiate with the creditor. Open collections
can also damage your credit rating. Finally,
WI law provides for up to nine months in jail
and a $10,000.00 fine for issuance of a worthless
check, if there is a criminal charge via the DA.
The bottem line: Don't write checks if you're
not positive they'll clear.
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