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Most people think of a bounced check as nothing more than an embarrassing mistake or a small financial hiccup. Maybe the account balance was lower than expected, or a deposit hadn’t cleared in time. While many bounced checks happen accidentally and are resolved quickly, Texas law takes a very different view when a check is written without enough funds — especially if there’s evidence that the writer knew it would bounce. In these cases, what might seem like a simple banking issue can quickly turn into a criminal matter known as theft by check.
For many Texans, the phrase “theft by check” is surprising. After all, writing a bad check doesn’t feel like shoplifting or robbery. But under Texas theft by check law, knowingly writing a check that cannot be honored is treated as a form of fraud and theft. Businesses, landlords, and individuals rely on checks as a promise of payment. When that promise is broken, it can cause serious financial harm, and the state has strong laws in place to deter it.
This article explains what theft by check means in Texas, the potential consequences, how businesses and prosecutors handle these cases, and what to do if you are accused. Whether you are a business owner dealing with a returned check or someone facing charges, understanding the law is essential to avoiding costly mistakes.
What Counts as Theft by Check in Texas?
Theft by check occurs when someone writes a check for goods, services, rent, or other obligations knowing that the account does not have enough funds to cover it — or when the account is closed altogether. The key factor is intent. The state must prove that the person intended to defraud the recipient by issuing a check they knew would not clear.
Texas Penal Code Section 31.06 lays out the rules for theft by check. It creates a legal presumption of intent in certain situations. For example, if someone writes a check and the recipient deposits it, but the check bounces and the writer does not make good on the payment within 10 days after receiving a certified notice, the law presumes that they knew there were insufficient funds. This presumption makes it easier for prosecutors to bring criminal charges.
It’s important to note that not every returned check automatically leads to prosecution. If a person truly didn’t realize their account was low and quickly pays the amount owed after being notified, it’s usually treated as a civil matter rather than a criminal one. However, ignoring notices, failing to repay, or showing a pattern of writing bad checks can push the situation into criminal territory.
How Businesses and Victims Handle Bounced Checks
When a business or landlord receives a bad check, they don’t immediately call the police. Texas law has a clear process for handling these cases.
The recipient must first send a written demand letter to the person who wrote the check. This letter must be sent by certified mail with return receipt requested and must state the amount owed, the returned check fee (if any), and a deadline of at least 10 days to pay the full amount. This gives the check writer a chance to correct the mistake and avoid criminal charges.
If the person pays within the 10-day window, the matter ends there. But if they fail to respond or refuse to pay, the business can take the matter to the local district attorney’s office. Many Texas counties have dedicated Hot Check Divisions that handle these complaints. The DA’s office will review the case and, if appropriate, file criminal charges.
This process protects both sides. It ensures that honest mistakes are resolved quickly while allowing prosecutors to pursue individuals who intentionally write bad checks and cause financial harm.
Criminal Penalties for Theft by Check
The severity of theft by check charges depends on the amount of money involved. Texas classifies the crime based on the value of the check or checks written:
- Less than $100: Class C misdemeanor, punishable by a fine of up to $500.
- $100 to $749: Class B misdemeanor, punishable by up to 180 days in jail and a fine of up to $2,000.
- $750 to $2,499: Class A misdemeanor, punishable by up to one year in jail and a fine of up to $4,000.
- $2,500 to $29,999: State jail felony, punishable by 180 days to 2 years in a state jail facility and a fine of up to $10,000.
- $30,000 or more: The penalties increase further, with higher felony levels carrying more prison time.
These amounts reflect the total value of all bad checks in a single scheme or case. For example, if someone writes multiple checks to the same business over a period of time, prosecutors can combine the amounts to reach a higher charge level.
The consequences go beyond fines and jail time. A theft by check conviction creates a criminal record, which can make it harder to find employment, rent an apartment, or obtain professional licenses. It may also affect immigration status for non-citizens, as crimes involving fraud or theft can be considered grounds for deportation.
Civil Liability in Addition to Criminal Charges
Even if criminal charges are filed, the person who wrote the bad check still owes the money. Texas law allows victims to sue in civil court for the amount of the check, any bank fees, and additional damages. In some cases, victims can recover up to three times the amount of the check as a penalty, plus attorney’s fees and court costs.
This means someone facing theft by check charges might end up dealing with both criminal prosecution and a separate civil lawsuit. Resolving the debt quickly and working with the victim to settle the matter can sometimes help reduce the risk of both.
Common Scenarios That Lead to Theft by Check Charges
While theft by check might sound like something only career criminals commit, many ordinary people find themselves in trouble due to misunderstandings or poor financial management. Some common situations include:
- A person writes a rent check before payday, assuming a deposit will clear in time, but it doesn’t.
- Someone closes an old account and forgets to update automatic payments or outstanding checks.
- A struggling small business owner writes checks to suppliers while hoping that incoming payments will cover them, but the cash flow never materializes.
- A person intentionally writes checks to multiple businesses knowing there is no money to cover them, essentially using the checks as a form of fraud.
The first two examples are often treated as civil matters if the person quickly pays the amount owed. The last example clearly shows criminal intent and is more likely to lead to prosecution.
Defenses Against Theft by Check Charges
Being accused of theft by check is serious, but there are defenses available. Since the state must prove intent, one of the strongest defenses is showing that there was no intent to defraud.
For instance, if a check bounced because of an unexpected bank error or because funds were delayed but the writer made a good-faith effort to correct the issue, that may defeat the presumption of intent. Evidence such as bank statements, correspondence with the payee, and proof of repayment can all help.
Another defense involves errors in the legal process. If the business or prosecutor failed to send proper notice or did not follow the required steps, the charges may be challenged. In some cases, mistaken identity or fraudulent use of another person’s account information can also come into play.
Because theft by check cases often hinge on details, working with a knowledgeable criminal defense attorney is essential. An attorney can negotiate with prosecutors, identify weaknesses in the case, and work toward dismissal or reduced charges.
The Importance of Acting Quickly
One of the biggest mistakes people make after learning about a bounced check is ignoring it. Hoping the problem will go away only makes it worse.
When you receive notice of a returned check, act immediately. Contact the payee, explain the situation, and arrange to repay the full amount plus any fees. Doing so within the 10-day window can prevent the matter from escalating to law enforcement.
If you receive a letter from a district attorney’s Hot Check Division, don’t ignore it. At that point, criminal charges are likely imminent. Prompt action — including contacting an attorney — can make a huge difference in the outcome.
Why Texas Takes Theft by Check Seriously
Texas has strong theft by check laws because bad checks can have a ripple effect throughout the economy. Small businesses in particular can suffer significant harm when they accept a check that later bounces. For many business owners, one or two unpaid invoices can mean the difference between staying afloat and closing their doors.
By criminalizing intentional bad checks, the state sends a clear message that this type of fraud will not be tolerated. It also gives businesses a legal tool to recover losses and hold offenders accountable.
At the same time, the law strikes a balance by giving individuals a chance to correct honest mistakes. The 10-day notice requirement ensures that people who make accidental errors can fix them without facing criminal prosecution.
Practical Steps to Avoid Problems
While theft by check charges can be frightening, they are also preventable. Here are some simple practices to avoid trouble:
- Keep close track of your account balances and pending transactions.
- Use online banking alerts to monitor deposits and withdrawals.
- Avoid writing checks unless you are certain the funds are available.
- Communicate with businesses or landlords if you anticipate a problem with payment.
- Consider using alternative payment methods like debit cards or electronic transfers, which reduce the risk of timing issues.
For businesses, verifying checks and working with reliable payment processors can help prevent losses. Many retailers use systems that flag suspicious accounts or require identification for high-dollar transactions.
Conclusion
A bounced check might seem like a small problem, but under Texas theft by check law, it can quickly turn into a criminal matter with serious consequences. The state treats intentional bad checks as theft because they involve deception and financial harm.
Whether you are a business owner seeking to recover losses or an individual facing charges, understanding the process is key. Responding quickly to notices, maintaining clear financial records, and seeking legal advice can prevent minor mistakes from spiraling into life-changing legal problems.
In the end, theft by check cases highlight the importance of trust in financial transactions. A check is more than just a piece of paper — it’s a promise. When that promise is broken intentionally, Texas law is ready to step in. Acting responsibly and staying informed is the best way to avoid becoming part of the system, whether as a victim or a defendant.
