What happens to a return check that was altered?
When a return check is altered, it can lead to a series of legal and financial consequences. A return check, also known as a bounced check or a dishonored check, occurs when the issuer of the check does not have sufficient funds in their bank account to cover the amount written on the check. However, when an altered return check is involved, the situation becomes more complex and requires a closer look at the legal implications and the steps taken by the bank and the issuer. Let’s explore what happens to a return check that was altered.
Legal Implications
Altering a return check is considered a fraudulent act. It involves making unauthorized changes to the check, such as altering the amount, date, or payee information. When a return check is altered, the issuer can face serious legal consequences, including civil lawsuits and criminal charges.
If the issuer is found guilty of altering a return check, they may be required to pay the victim the full amount of the check, along with any additional damages or penalties imposed by the court. In some cases, the issuer may also be subject to fines or even imprisonment, depending on the severity of the offense.
Moreover, the bank that issued the altered check may also be held liable for failing to detect the alteration. This can lead to financial losses for the bank, as they may be required to compensate the victim for the amount of the check and any related damages.
Bank’s Response
When a return check is altered, the bank will typically follow a specific process to address the situation. Here’s what usually happens:
1. Notification: The bank will notify the issuer of the altered check that their check has been returned due to insufficient funds. Additionally, the bank will inform the issuer that the check has been altered and that it is considered fraudulent.
2. Investigation: The bank will conduct an investigation to determine the nature of the alteration and gather evidence to support their findings.
3. Legal Action: If the bank determines that the check was indeed altered, they will take legal action against the issuer. This may involve filing a civil lawsuit or reporting the incident to law enforcement agencies.
4. Financial Consequences: The issuer may face financial penalties, including the amount of the altered check, along with any additional damages or penalties imposed by the court.
Victim’s Response
The victim of an altered return check should take the following steps to protect their interests:
1. Document the Incident: Keep a record of all communications with the bank and the issuer, including emails, letters, and phone calls.
2. Report to the Bank: Inform the bank about the altered check and provide any evidence you have, such as photographs or copies of the altered check.
3. File a Police Report: If the alteration is considered a criminal offense, file a police report to document the incident and seek legal assistance.
4. Seek Legal Advice: Consult with an attorney to understand your rights and options for pursuing legal action against the issuer.
In conclusion, what happens to a return check that was altered can have significant legal and financial repercussions for both the issuer and the bank. It is crucial for all parties involved to understand the consequences of altering a return check and to take appropriate actions to address the situation.
