Writing a check from a closed account will result in the payment being returned to the bank where it was drawn and any number of collection activities being initiated against the check writer by either the bank, the receiver of the payment, or both. 

When the check that is written on a closed account is eventually sent to the bank it is drawn for payment, the bank will clearly not honor the payment and may report the bounced check to one or more credit reporting agencies that track banking activity such as ChexSystems.  Having a derogatory record in a credit report could interfere with the check writer’s ability to open another account with most banks at a future date.

Writing a check from a closed checking account may also result in the recipient of the check, or the bank, forwarding the account to a collection agency.  The collection account may in turn be reported to a credit reporting agency which may impair the check writer’s credit report and credit history.

The receiver of the check will also initiate a demand to replace the bad check and will generally add a fee or costs for the expenses associated with handling the bad check. 

Furthermore, if an individual writes the check knowing full well that the account was closed and the check would bounce or not otherwise cover the payment, they could be charged with a criminal violation.  Once the writer knows that a check will not be honored when it is written and sent, the action is considered check fraud.  Check fraud could result in either criminal prosecution or civil action against the responsible party.

The scenarios laid out above include some of the worst case developments, the outcome may not end quite as horribly.  Some banks will simply return the check indicating the account was closed.  The check writer will then have to settle up with the payee or recipient of the check to cover the payment and any added costs for the initial returned payment.  

The consequences of writing a check from a closed bank account will differ depending on the circumstances and the bank.

No user commented in " What Happens When you Write a Check from a Closed Checking Account? "

Follow-up comment rss or Leave a Trackback

Leave A Reply

 Username (*required)

 Email Address (*private)

 Website (*optional)