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Bad check laws in Colorado

Colorado law lets a check holder pursue civil recovery and, in serious cases, criminal charges against someone who writes a check that bounces. Colo. Rev. Stat. Section 13-21-109 sets civil damages and notice rules, while Colo. Rev. Stat. Section 18-5-205 defines fraud by check as a crime that grows more serious as the check amount rises. This page explains the rules and points to help in Colorado.

Reviewed by the BadCreditMD Editorial Team on . Last updated .

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Colorado addresses bad checks through two statutes. Colo. Rev. Stat. Section 13-21-109 lets a check holder pursue civil damages, including an enhanced remedy after a fifteen day notice period, and caps any service charge on a dishonored check. Colo. Rev. Stat. Section 18-5-205 makes fraud by check a crime, with penalties that rise from a petty offense through misdemeanors to several felony classes as the check amount grows. If you need help, the Colorado Attorney General, Colorado Legal Services, the Consumer Financial Protection Bureau, Colorado PEAK and your local community help line are all starting points in the state.

What Colorado's bad check law covers

Colorado treats a dishonored check as both a possible civil claim and, above certain amounts, a crime. Colo. Rev. Stat. Section 13-21-109 lets the person who holds the check go after the person who wrote it for money owed, while Colo. Rev. Stat. Section 18-5-205 makes fraud by check a crime once a check is written knowing there are not enough funds or the account does not exist. Which path applies depends on the facts and the amount of the check, and the civil and criminal processes run separately.

Civil damages and the notice period

Under Colo. Rev. Stat. Section 13-21-109, the person holding a bad check can recover the face amount plus actual damages, or the face amount plus a service charge. If the check writer still has not paid after the holder gives fifteen days written notice of nonpayment, the holder may instead seek three times the face amount, subject to the statutory minimum in Colo. Rev. Stat. Section 13-21-109. The fifteen day notice period gives the check writer a chance to make good before the stakes rise.

Service charges on a dishonored check

A business or person that accepts a check and posts or contracts for a service charge on a dishonored check may only charge up to the cap set in Colo. Rev. Stat. Section 13-21-109. A charge above that cap is not allowed under Colorado law. If you are being asked to pay a service charge on a returned check, you can check the amount against what the statute allows and raise the issue if the charge appears too high.

Criminal penalties that rise with the check amount

Fraud by check is a crime under Colo. Rev. Stat. Section 18-5-205, and the level of the offense rises with the amount of the check. At the lowest tier it is a petty offense, rising to a class 2 misdemeanor and then a class 1 misdemeanor as the amount increases, and becoming a class 6 felony once the check reaches a threshold the statute sets, with further felony classes at higher thresholds. The specific amounts that separate each tier are set by the statute itself.

Time limits for bringing a claim

Colo. Rev. Stat. Section 13-21-109 also sets how long a holder has to sue. A standard claim for actual damages must be brought within six years, while a claim seeking the enhanced treble damages remedy must be brought within two years. These time limits run from when the check was dishonored, so a holder who waits too long can lose the right to collect through either path.

Getting help in Colorado

If you received a notice about a bad check, or you are trying to collect on one, Colorado offers places to turn. The Colorado Attorney General accepts consumer complaints and oversees consumer credit matters in the state. The Consumer Financial Protection Bureau takes complaints about financial companies. Colorado Legal Services offers legal help for people who qualify, and the National Foundation for Credit Counseling agency finder can connect you with nonprofit credit counseling. Colorado PEAK lists state benefits, and your local community help line can point you toward other assistance in your area.

Key facts

  • Civil damages ruleThe holder may recover the face amount plus actual damages, or the face amount plus a service charge, or, after 15 days' notice, three times the face amount but not less than $100, under Colo. Rev. Stat. Section 13-21-109.[1]
  • Felony threshold amountFraud by check is a class 6 felony from $2,000 up to $5,000, rising through class 5, 4, 3, and 2 felonies at higher amounts, under Colorado law ($2,000).[2]
  • Misdemeanor penaltyFraud by check is a petty offense under $300, a class 2 misdemeanor from $300 up to $1,000, and a class 1 misdemeanor from $1,000 up to $2,000, under Colorado law.[2]
  • Notice periodThe holder must give 15 days' written notice of nonpayment before treble damages become available, under Colorado law (15 days).[1]
  • Service fee maximumA posted or contractual service charge on a dishonored check may not exceed $20 under Colorado law ($20).[1]
  • Statute citationColo. Rev. Stat. Section 18-5-205[2]
  • Statute of limitationsSix years for a standard actual-damages claim and two years for a treble-damages claim under Colorado law.[1]
  • Treble damagesColorado allows treble damages of three times the check's face amount, with no stated cap, if the drawer fails to pay within 15 days of notice (3 times).[1]

Lending rules in Colorado: Colorado lending laws.

Related loan rules: Payday loans in Colorado.

Common questions

Can I be arrested just for writing a check that bounces in Colorado?

Not automatically. A dishonored check becomes a crime under Colo. Rev. Stat. Section 18-5-205 only when the elements of fraud by check are met, such as writing the check knowing funds or the account were not there. An honest mistake that gets corrected is different from fraud by check, and the civil remedies under Colo. Rev. Stat. Section 13-21-109 exist separately from any criminal charge.

What should I do if I get a notice about a bad check?

Read the notice carefully and note any deadline it gives you to pay. Colo. Rev. Stat. Section 13-21-109 gives the check writer fifteen days after notice before the holder can seek the enhanced treble damages remedy, so acting before that period ends can limit what you owe. If you are unsure of your rights, Colorado Legal Services or the Attorney General's office can help.

Does Colorado law let a holder charge whatever they want for a bounced check?

No. Any posted or contractual service charge on a dishonored check is capped under Colo. Rev. Stat. Section 13-21-109. A charge above that cap is not allowed under Colorado law, and you can raise that with the business or report it to the Attorney General if you believe you were overcharged.

Who enforces Colorado's bad check laws

Civil claims under Colo. Rev. Stat. Section 13-21-109 are brought by the check holder, often in small claims or county court. Criminal charges under Colo. Rev. Stat. Section 18-5-205 are brought by local prosecutors. The Colorado Attorney General's Consumer Credit Unit also handles related consumer protection complaints.

Sources

  1. Colorado General Assembly, Office of Legislative Legal Services. Colorado Revised Statutes 2024, Title 13, Section 13-21-109, Recovery of Damages for Checks, Drafts, or Orders Not Paid Upon Presentment.
  2. Colorado General Assembly, Office of Legislative Legal Services. Colorado Revised Statutes 2024, Title 18, Section 18-5-205, Fraud by Check.