How to read the numbers here
Arkansas Constitution Amendment 89, Section 3 sets the framework for short-term lending in the state: payday loans and title loans are not allowed under Arkansas law, while installment loans remain allowed under Arkansas law under Arkansas Code Section 4-57-101 et seq, overseen by the Arkansas Attorney General for usury enforcement and the Arkansas State Bank Department for the lenders it regulates. Arkansas also addresses bad checks through three statutes: Ark. Code Ann. Section 5-37-302 defines the offense, Section 5-37-305 sets misdemeanor and felony penalties, and Section 4-60-103 sets civil damages and the written demand process.
What Arkansas law says about bad checks
Arkansas Code Ann. Section 5-37-302, as amended by Act 570 of 2011, makes it an offense to write, pass, or deliver a check knowing there are not enough funds to cover it. Separately, Arkansas treats short-term lending differently from most states: under Arkansas Constitution Amendment 89, Section 3, payday loans and title loans are not allowed under Arkansas law, while installment loans remain allowed under Arkansas law under Arkansas Code Section 4-57-101 et seq, subject to oversight by the Arkansas Attorney General for usury enforcement and the Arkansas State Bank Department for the lenders it regulates. If you wrote a check that bounced, the path a payee takes depends on the amount of the check and whether the check writer responds to a formal demand for payment.
Civil demand and double damages
Under Arkansas Code Ann. Section 4-60-103, as amended by Act 1012 of 2011, if the check writer does not pay within 30 days of a written demand sent by mail, the holder can pursue civil damages equal to twice the amount of the check, subject to a statutory minimum recovery amount, plus a collection fee capped at a statutory maximum and any bank fees charged for the returned check. These civil remedies are separate from any criminal charge and exist so a merchant or landlord can recover costs without filing a police report.
Criminal charges: misdemeanor or felony
Arkansas Code Ann. Section 5-37-305 sets criminal penalties for making, uttering, or delivering a bad check. Smaller checks are treated as an unclassified misdemeanor, with fines that increase if the person has prior offenses for the same conduct. Larger checks move the offense into felony territory, with three felony classes, Class D, Class C, and Class B, that increase as the amount written on the check increases. Which tier the law sets depends entirely on the amount of the check and the check writer's history.
Notice before prosecution can proceed
Before nonpayment can support a presumption of intent to defraud for prosecution under Arkansas law, the check writer must receive written notice and has 10 days to pay the amount due plus the service charge. This notice period gives someone who bounced a check a chance to make it right before the matter becomes a criminal case. Acting quickly, paying the check amount and any fee within that window, is the clearest way to avoid criminal exposure.
Where to get help in Arkansas
If you are dealing with a bad check, debt collection, or weighing a loan while rebuilding credit, several resources in Arkansas can help. The Arkansas Attorney General's consumer protection division handles complaints about collection practices and usury concerns, and the Arkansas State Bank Department oversees the lenders it regulates. Arkansas Legal Aid offers legal help for people who cannot afford an attorney, the Consumer Financial Protection Bureau takes complaints about financial companies, and the National Foundation for Credit Counseling can connect you with a nonprofit credit counselor. For other needs, the state's benefits portal and the statewide information and referral service can point you to local assistance.
Key facts
- Civil damages ruleTwice the amount of the check but not less than $50, plus a collection fee of up to $30 and any bank fees, if not paid within 30 days of a certified-mail demand, under Ark. Code Ann. Section 4-60-103.[1]
- Felony threshold amountMaking, uttering, or delivering a bad check is a Class D felony for more than $1,000 up to $5,000, a Class C felony for more than $5,000 but less than $25,000, and a Class B felony at $25,000 or more, under Ark. Code Ann. Section 5-37-305 ($1,000).[2]
- Misdemeanor penaltyFor a bad check of $1,000 or less, Ark. Code Ann. Section 5-37-305 sets escalating unclassified-misdemeanor fines from $50 up to $2,000 depending on whether it is a first, second, or third offense.[2]
- Notice periodPayment must be made within 30 days of a certified-mail demand to avoid doubled civil damages under Arkansas law; an initial 15-day demand period also governs plain restitution (30 days).[1]
- Prosecution notice requirementThe check writer must receive written notice and has 10 days to pay the amount due plus the service charge before nonpayment supports a presumption of intent to defraud for prosecution, under Arkansas law.[1]
- Service fee maximumA collection fee of not more than $30 per check may be added to restitution, plus any bank fees, under Arkansas law ($30).[1]
- Statute citationArk. Code Ann. Section 5-37-302[2]
Lending rules in Arkansas: Arkansas lending laws.
Common questions
Is writing a bad check a crime in Arkansas?
Yes. Under Ark. Code Ann. Section 5-37-305, making, uttering, or delivering a check knowing funds are insufficient is a crime under Arkansas law. Smaller checks are charged as an unclassified misdemeanor, while larger checks can rise to a felony, with the specific charge set by the amount of the check.
Can a store or landlord sue me for a bounced check?
Yes. Under Arkansas law, the holder of a bad check can send a written demand by mail, and if the check writer does not pay within 30 days, the holder can seek civil damages equal to twice the amount of the check, subject to a statutory minimum, plus a collection fee and any bank charges, separate from any criminal case.
Are payday loans allowed under Arkansas law?
No. Payday loans and title loans are not allowed under Arkansas law under Arkansas Constitution Amendment 89, Section 3. Installment loans remain allowed under Arkansas law, overseen by the Arkansas Attorney General for usury enforcement and the Arkansas State Bank Department for the lenders it regulates.
What happens if I pay the check after I get a demand letter?
Paying promptly matters. Arkansas law gives the check writer a notice period, 10 days to pay the amount due plus the service charge, before nonpayment can support a presumption of intent to defraud for prosecution. Paying within the demand period can also help avoid the doubled civil damages tied to the written demand.
Where can I find legal help with a bad check case in Arkansas?
Arkansas Legal Aid offers legal help for people who cannot afford an attorney, and the Arkansas Attorney General's consumer protection division takes complaints about collection practices. The Consumer Financial Protection Bureau and the National Foundation for Credit Counseling are additional resources for financial concerns.
Sources
- Arkansas General Assembly. Act 1012 of 2011, Arkansas General Assembly, amending Ark. Code Ann. Section 4-60-103.
- Arkansas General Assembly. Act 570 of 2011, Arkansas General Assembly, amending Ark. Code Ann. Section 5-37-302.