How to read the numbers here
Georgia residents dealing with a bad check should know the state treats it as deposit account fraud under O.C.G.A. Section 16-9-20, with penalties tied to the check amount and separate civil damages available to the payee under O.C.G.A. Section 13-6-15. The Georgia Department of Banking and Finance oversees consumer lenders and publishes its own bad check guidance, while the Attorney General's Consumer Protection Division handles consumer complaints and payday lending enforcement. Installment loans and title loans are allowed under Georgia law; payday loans are not. Georgia Legal Services Program, the National Foundation for Credit Counseling and the Georgia Gateway benefits system can help.
What Georgia's bad check law covers
Georgia addresses bad checks through its deposit account fraud statute, O.C.G.A. Section 16-9-20. The statute covers situations where a person writes, makes or delivers a check, draft or order for payment on a bank or depository institution knowing there are not sufficient funds or credit to cover it. Georgia law is enforced through the criminal justice system, and the Georgia Department of Banking and Finance publishes guidance for consumers and payees who receive a check that comes back unpaid. If you wrote a check that did not clear, the path forward is to resolve it directly with the payee or the bank, since the statute ties the consequences to whether the shortfall is made right and to the amount involved.
Penalty tiers under Georgia law
O.C.G.A. Section 16-9-20(b) sets criminal penalties that scale with the value of the instrument. Checks below a lower amount set by the statute are treated as misdemeanors with a fine and imprisonment the statute caps. Checks in a middle range can also be charged as misdemeanors, with a higher fine and the same term of imprisonment the statute allows. Checks in the range just under the felony threshold are treated as a misdemeanor of a high and aggravated nature. Once the instrument reaches the felony threshold set in O.C.G.A. Section 16-9-20(b)(3), the offense can be charged as a felony, carrying a fine within the range the statute sets, imprisonment the statute caps, or both. Any conviction under the statute also requires restitution of the instrument amount.
Civil damages and restitution
Beyond the criminal penalties, O.C.G.A. Section 13-6-15 lets the payee of a check that bounces for lack of funds seek fees and civil damages separate from any criminal case. On the criminal side, a conviction under O.C.G.A. Section 16-9-20 requires restitution of the instrument amount plus the costs of bringing the complaint, and the statute sets a minimum for those costs. These two routes are separate: a payee can pursue civil recovery whether or not the matter is also prosecuted as deposit account fraud.
Loan options and bad check rules in Georgia
If you are worried about covering an upcoming payment, it helps to know which loan types Georgia allows. Installment loans are allowed under Georgia law under O.C.G.A. Section 7-3-1 et seq., with a general usury cap set out at O.C.G.A. Section 7-4-2, and the Georgia Department of Banking and Finance oversees consumer lenders. Payday loans are not allowed under Georgia law under O.C.G.A. Section 16-17-1 et seq. and O.C.G.A. Section 7-4-1 et seq., with the Georgia Attorney General's Consumer Protection Division and the Department of Banking and Finance handling enforcement. Title loans are allowed under Georgia law under O.C.G.A. Section 44-12-131 et seq., with a disclosure requirement at O.C.G.A. Section 44-12-138. Whatever loan type you consider, check the cost example on this page before you sign anything, and ask the lender directly about the APR, the repayment period and the number of payments.
Where to get help in Georgia
If a bad check or a cash shortfall has you worried, several Georgia and federal resources can help before you borrow. The Georgia Attorney General's Consumer Protection Division takes consumer complaints, and the Georgia Department of Banking and Finance oversees consumer lenders and publishes its own guidance on bad checks. Georgia Legal Services Program offers legal help for residents who qualify, and the National Foundation for Credit Counseling can connect you with a nonprofit credit counseling agency near you. The Consumer Financial Protection Bureau takes complaints about lenders and debt collectors nationwide. The Georgia Gateway system handles applications for state benefits, and a statewide community resource helpline can direct you to local assistance programs, from food and housing help to free legal clinics.
Key facts
- Civil damages ruleFees and civil damages may be available under O.C.G.A. Section 13-6-15 to the payee of a check that is not honored due to lack of funds.[1]
- Felony penaltyFelony deposit account fraud carries a fine of $500 to $5,000, imprisonment of up to 3 years, or both, under O.C.G.A. Section 16-9-20(b)(3). Any conviction also requires restitution of the instrument amount plus the costs of bringing the complaint, with minimum costs of $25.[2]
- Felony threshold amountDeposit account fraud involving an instrument of $1,500 or more is a felony under O.C.G.A. Section 16-9-20(b)(3) ($1,500).[2]
- Misdemeanor penaltyDeposit account fraud involving an instrument under $500 carries a fine of up to $500, imprisonment of up to 12 months, or both; $500 up to $1,000 carries a fine of up to $1,000, imprisonment of up to 12 months, or both; and $1,000 to $1,499.99 is a misdemeanor of a high and aggravated nature, under O.C.G.A. Section 16-9-20(b).[2]
- Statute citationO.C.G.A. Section 16-9-20[1]
Lending rules in Georgia: Georgia lending laws.
Related loan rules: Payday loans in Georgia.
Common questions
Can I go to jail for a bad check in Georgia
Yes, deposit account fraud under O.C.G.A. Section 16-9-20 can carry imprisonment on top of a fine, with the specific tier depending on the amount of the check. Checks at or above the felony threshold set in O.C.G.A. Section 16-9-20(b)(3) can be charged as a felony rather than a misdemeanor.
Do I have to pay back the check amount if I am convicted
Yes, O.C.G.A. Section 16-9-20 requires restitution of the instrument amount as part of any conviction, plus the costs of bringing the complaint, which the statute sets a minimum for.
Can the payee sue me separately from any criminal case
Yes, O.C.G.A. Section 13-6-15 lets the payee of a check that is not honored for lack of funds pursue fees and civil damages, on top of any fine or imprisonment set for the amount involved under the criminal statute.
Are payday loans allowed in Georgia instead of writing a bad check
No, payday loans are not allowed under Georgia law under O.C.G.A. Section 16-17-1 et seq. and O.C.G.A. Section 7-4-1 et seq. Installment loans and title loans are allowed under Georgia law, each with its own rules under the statutes cited on this page.
Where can I get free help if I am behind on bills in Georgia
Georgia Legal Services Program offers legal help for qualifying residents, the National Foundation for Credit Counseling can connect you with a nonprofit counselor, and the Consumer Financial Protection Bureau takes complaints. A statewide community resource helpline can also point you to local food, housing and financial assistance.
Sources
- Georgia Department of Banking and Finance. Bad Checks.
- Georgia General Assembly. Georgia House Bill 1176 (2012, as passed House and Senate), Section 3-6, which quotes the operative text of O.C.G.A. Section 16-9-20(b), deposit account fraud, as amended.
Representative example
- Amount borrowed
- $1,000
- Annual percentage rate (APR)
- 29.99%
- Repayment
- 12 monthly payments
- Payment
- $97.48
- Finance charge
- $169.76
- Total of payments
- $1,169.76
Example: a $1,000 installment loan at 29.99% APR repaid in 12 monthly payments of $97.48 costs $1,169.76 in total, including a finance charge of $169.76. Illustration only; your lender will disclose your actual APR, payment schedule and total cost before you accept a loan.