Anyone living in the Philippines must be no stranger to checks. Whether it's for paying rent, tuition fees, shopping, or even borrowing transactions, checks are used.
Checks are the most common form of payment in Philippine life.
Today, I'm sharing with you an important legal fact - bounced checks and their recovery period.
What is a bounced check?
By bouncing a check, you are issuing a blank check.
This is against the law and the law has clear provisions for dealing with this behavior and the period of recourse.
The issuance of bad checks is subject to civil damages or criminal liability under the Philippine Anti-Bouncing Check Act (Batas Pambansa Blg. 22). The issuance of bad checks is considered a fraudulent act and may result in fines or even imprisonment.
Bouncing the recourse period
Criminal liability
If you are prosecuted for issuing a bad check:
The legal recourse period is 4 years from the date the check was issued.
So, if you have a problem with bounced checks, be sure to take legal action within 4 years
Civil liability
The payee may bring a civil action within 10 years for reimbursement of the amount of the check or for damages.
What to do if you get a bounced check!
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Preservation of evidence
Whether it is a criminal or civil proceeding, it is very important to preserve all relevant evidence (e.g., copies of checks, bank records, communication records, etc.).
This evidence will play a key role in the legal proceedings.
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Timely action
When you notice a check bouncing, take action as soon as possible.
Contact your bank for information and notify them as soon as possible so that the problem can be resolved.
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Consultation with a lawyer
If you are experiencing problems with bounced checks, it is advisable to consult with an attorney as early as possible to learn the best course of legal action and to ensure that the necessary legal steps are taken within the period of recourse.
An attorney will be able to help you assess the merits of your case, provide professional advice, and pursue legal action on your behalf if necessary.
How do you avoid bouncing checks yourself?
Ensuring account balances
Before issuing a check, make sure there is enough balance in the account to cover the amount of the check. In the event of a bounced check, the bank is likely to fine the person who wrote the check a not inconsiderable amount of money!
Timely bookkeeping
Make it a habit to keep track of your accounts in a timely manner to avoid bouncing checks due to negligence
Communication with banks
Before issuing a check, make sure there is enough balance in the account to cover the amount of the check. In the event of a bounced check, the bank is likely to fine the person who wrote the check a not inconsiderable amount of money!