Isabella County Prosecuting Attorney
Bad Check Restitution Program
Larry J. Burdick, Prosecuting Attorney
Tips for Accepting Checks.
The
best way to reduce your losses is to avoid taking bad checks from the
start. The following tips are suggestions to help you establish good procedures
for accepting checks.
Institute a check acceptance policy.
A clearly posted check acceptance policy for your employees and customers
can go a long way toward reducing your losses. Policies should state which
types of checks can and cannot be accepted and include the consequences
to bad check writers.
Confirm the identity
of the check writer.
All I.D. can be forged. The most reliable form of I.D. is that which
contains a photo and a physical description. Take the I.D. in hand and
write the I.D. number, birth date, address and other descriptive data
on the front of the check. Ask questions. If the I.D. does not belong
to the person writing the check, they may be thrown off guard.
Whenever possible
avoid accepting checks written on a new account.
Approximately 85% of all bad checks are written on accounts only a
few months old and bear check numbers between 101 and 150. Use caution.
Do not accept counter drafts.
The signature
should be legible and signed in the presence of the individual accepting
the check.
Do NOT accept previously signed checks. For a company check, it is
vital that the signature is legible. If not, print the individual's name
on the front of the check.
The complete
address should be imprinted on the check.
Require a street address, in addition to a P.O. Box number. Obtain
a phone number as well.
Accept checks
only written with today's date.
Pre- or post-dated checks are not accepted in the Bad Check Restitution
Program and cannot typically be criminally prosecuted. This restricts
any recourse you may have against the check writer if your own collection
attempts fail.
Make sure written
amounts and numbers correspond.
Banks will not honor checks with discrepancies between written amounts
and numbers.
Avoid accepting checks drawn on an out-of-state bank.
REMEMBER, you are not
required to accept a check from anyone.
If you feel uncomfortable or suspicious, trust your intuition!
Ask for another form of payment.