• Writing bad checks can result in a felony record and public embarrassment.check in macro image by Alexey Klementiev from Fotolia.com
  
  When a business is handed a bad check for services rendered or for merchandise purchased, the person who handed them the check has committed fraud. Many businesses take it upon themselves to warn others in the community that the entity that handed them the check has done so, by publicly posting bad checks. In doing so, they have effectively said that the check--and the money it represents--uncollectable. There are a few regulations on this practice that need to be considered before posting such a check.
  
  

Libel Laws

• While it's a common statement by bad check writers that public posting of bad checks is libelous (spreading untruths about a company or person to undermine their credibility in the community), the ultimate defense against libel is the truth. If the checks have been returned because there were non-sufficient funds in the bank, that is sufficient corroboration of the truth of the claim.
  
  

Defamation Law

• One of the hazards of publicly posting bad checks is that if the public posting notice is not taken down (or the person is convicted of minor misdemeanor bad check writing), and the person later makes amends, failure to remove the publicly posted bad checks can put the poster at the risk for a defamation lawsuit. However, defamation lawsuits force the person making the claim to show clear harm to public personas and reputation, or subsequent financial harm.
  
  

Civil Penalties for Writing Bad Checks

• Bad checks have penalties that vary from state to state, with first offenses generally more lenient. In many cases, if an honest attempt to pay off the debt with the original payee can be arranged, the courts will step aside. Most businesses that post bad checks for public display do so only after a repeated pattern of bad check writing has occurred and after quieter attempts to remedy the action have failed. Most of the laws on the books use some form of valuation based on a multiple of the check's value or some percentage of the check's value. A few calculate the value of the check plus attorney's fees and filing costs--a summary list is provided in the Resources area below.