How to read the numbers here
Alabama enforces bad check rules through Code of Alabama Section 13A-9-13.1, which makes negotiating a worthless negotiable instrument a Class A misdemeanor, and Section 13A-9-13.2, which gives the check writer 10 days after written notice to pay the amount due plus a service charge. Section 6-5-285 separately lets the holder sue for compensatory and punitive damages plus attorney fees, within one year of the unlawful act. The Alabama State Banking Department, Bureau of Loans oversees installment, payday, and title lending, all allowed under Alabama law. Residents can also reach Legal Services Alabama, the Department of Human Resources, and the Attorney General for consumer complaints.
What Alabama law says about bad checks
Under Code of Alabama Section 13A-9-13.1, negotiating a worthless negotiable instrument is a Class A misdemeanor. The statute does not set separate rules based on the dollar amount of the check, so a small check and a large one are treated the same way under this section. A worthless check generally means a check written on an account that does not have enough funds, or on an account that does not exist, at the time the check is presented for payment. Because this is a criminal statute, a prosecutor decides whether to bring charges, and a conviction can carry the penalties set for a Class A misdemeanor under Alabama law.
The 10 day notice before charges can follow
Alabama law gives the person who wrote the check a chance to make it right before nonpayment is treated as an attempt to defraud. Under Code of Alabama Section 13A-9-13.2, once the check writer receives written notice that the check was not paid, they have 10 days from receiving that notice to pay the amount due plus a service charge. Paying within that 10 day window matters, because it is tied to whether nonpayment supports a presumption of intent to defraud. If you receive this kind of notice in Alabama, read it carefully and note the date you received it, since the 10 day period runs from that date, not from the date the check bounced.
Civil damages a check writer could owe
Beyond any criminal case, the person or business that held a worthless check can also bring a civil claim. Under Code of Alabama Section 6-5-285, the holder of a worthless check, draft, or order may recover both punitive and compensatory damages, along with a reasonable attorney fee, with the amount set by the court or jury hearing the case. This is separate from any criminal misdemeanor charge, so a check writer could face both a criminal case and a civil lawsuit arising from the same check. Alabama law also limits how long the holder has to bring that civil claim: a civil action on a worthless check must be commenced within one year of the unlawful act.
Getting help with a bad check issue in Alabama
If you wrote a check that did not clear, do not ignore written notice about it, since responding within the 10 day period is your chance to pay the amount due plus the service charge before the situation escalates. If you are unsure about your rights or obligations, Legal Services Alabama offers legal aid to those who qualify, and the Alabama State Banking Department, Bureau of Loans regulates several types of lending in the state if your bad check is tied to a loan. Alabama's statewide information and referral helpline can point you toward local assistance, the Alabama Attorney General accepts consumer complaints, and the Consumer Financial Protection Bureau takes complaints about financial products as well. If money is tight and you are weighing whether to borrow to cover a shortfall, a nonprofit credit counseling agency found through the National Foundation for Credit Counseling can help you look at your options before you take on new debt.
Key facts
- Civil damages ruleThe holder of a worthless check may recover both punitive and compensatory damages, plus a reasonable attorney fee, in an amount set by the court or jury, under Ala. Code Section 6-5-285.[1]
- Misdemeanor penaltyNegotiating a worthless negotiable instrument is a Class A misdemeanor under Alabama law; the section sets no dollar-amount tiers.[2]
- Notice periodThe check writer has 10 days from receipt of written notice to pay the amount due plus a service charge before nonpayment supports a presumption of intent to defraud, under Alabama law (10 days).[3]
- Statute citationAla. Code Section 13A-9-13.1[2]
- Statute of limitationsA civil action on a worthless check must be commenced within one year of the unlawful act under Alabama law (1 year).[1]
Lending rules in Alabama: Alabama lending laws.
Common questions
Does the amount of the check change the criminal charge in Alabama
No. Code of Alabama Section 13A-9-13.1 sets negotiating a worthless negotiable instrument as a Class A misdemeanor without separate dollar-amount tiers, so the charge itself does not change based on how large the check was.
What happens if I pay within the 10 day notice period
Alabama law ties the 10 day period under Code of Alabama Section 13A-9-13.2 to whether nonpayment supports a presumption of intent to defraud. Paying the amount due plus the service charge within that window addresses that presumption tied to the notice you received.
Can someone sue me over a bad check even if I am not charged criminally
Yes. A civil claim under Code of Alabama Section 6-5-285 is separate from any criminal case. The holder of a worthless check can pursue compensatory and punitive damages plus attorney fees in a civil action, which must be commenced within one year of the unlawful act.
Where can I get free help understanding a bad check notice in Alabama
Legal Services Alabama provides legal aid for qualifying residents, and Alabama's statewide information and referral helpline can connect you to other local resources. The Alabama Attorney General and the Consumer Financial Protection Bureau both accept consumer complaints if you believe you were treated unfairly.
Sources
- Alabama Legislature. Code of Alabama Section 6-5-285, Holder of Worthless Check, Draft, or Order.
- Alabama Legislature. Code of Alabama Section 13A-9-13.1, Negotiating Worthless Negotiable Instrument - Generally.
- Alabama Legislature. Code of Alabama Section 13A-9-13.2, Notice of Refusal of Payment Upon Instrument.