How to read the numbers here
Kentucky prosecutes a knowingly bad check as theft by deception under Kentucky Revised Statutes Section 514.040, with penalties that rise from a misdemeanor to a felony depending on the value involved. The law gives check writers a notice period to make a check good before a prosecutor can rely on the presumption that they knew it would bounce. Kentucky also allows installment, payday and title lending, with title lending carrying added restrictions under a 2024 law. Residents dealing with a bad check, a collector or a loan problem can reach the Kentucky Attorney General, the Department of Financial Institutions, legal aid, or the statewide referral line.
How Kentucky treats a bad check
Kentucky does not have a separate bad check statute. Instead, issuing a check known to be dishonored falls under Kentucky Revised Statutes Section 514.040, the general theft by deception law. Prosecutors treat a knowingly bad check the same way they treat other forms of deception used to obtain property or services. The statute sets up a legal presumption about what a check writer knew at the time the check was written, and it scales the charge by the value involved. This means a bounced check is not automatically a crime. Whether charges follow depends on whether the writer knew the funds were not there and on what happened after the bank refused payment.
How penalties scale with the amount involved
Under Kentucky Revised Statutes Section 514.040, theft by deception, including issuing a check known to be dishonored, is a Class B misdemeanor at the lowest value tier. The charge rises to a Class A misdemeanor at the next tier, then to a Class D felony at a higher tier, and finally to a Class C felony at the top tier. The exact dollar thresholds that separate these tiers are set out in the statute itself rather than in this guide. Anyone facing a bad check accusation in Kentucky should read the statute or speak with legal aid to understand which tier applies to their situation, since the difference between a misdemeanor and a felony charge can be significant.
The notice period before a bad check becomes a crime
Kentucky law builds in a chance to fix the problem before criminal liability attaches. Under Kentucky Revised Statutes Section 514.040, a check writer is presumed to have known a check would not be paid if the check was presented within 30 days after it was issued, the bank refused it for lack of funds, and the writer failed to make the check good within 10 days after receiving notice of the refusal. If notice is mailed, the statute treats it as received 7 days after mailing. This window matters because it gives a check writer a real opportunity to pay before a prosecutor can rely on the presumption of knowledge. The statute also allows a business that accepted the check to recover a capped service fee for handling the dishonored check, rather than an open-ended amount.
Loans, checks and borrowing rules in Kentucky
If a bad check, a debt collector or a loan has become a problem, Kentucky residents have several places to turn. The Kentucky Attorney General accepts consumer complaints. The Kentucky Department of Financial Institutions, which regulates installment, payday and title lenders in the state, is the agency to contact about a lender it oversees. The Consumer Financial Protection Bureau takes complaints about many kinds of consumer loans. Nonprofit credit counseling agencies found through the National Foundation for Credit Counseling agency finder can help build a plan to repay debt. Legal aid organizations such as the ones listed in this guide's resources can advise on a theft by deception charge or a collection case. The statewide referral line can connect residents with local services, including help with benefits through Kentucky's kynect portal.
Key facts
| Measure | Figure |
|---|---|
| Felony threshold amount[1] | $1,000Year 2026 |
| Service fee maximum[1] | $50Year 2026 |
- Felony penaltyTheft by deception is a Class D felony when the value is 1,000 dollars up to 10,000 dollars, and a Class C felony at 10,000 dollars or more, under KRS Section 514.040.[1]
- Misdemeanor penaltyTheft by deception, which includes issuing a check known to be dishonored, is a Class B misdemeanor when the value of property or services obtained is under 500 dollars, and a Class A misdemeanor from 500 dollars up to 1,000 dollars, under KRS Section 514.040.[1]
- Prosecution notice requirementA maker is presumed to know a check would not be paid if it was presented within 30 days after issue, refused for lack of funds, and the maker failed to make good within 10 days after receiving notice, with mailed notice deemed received 7 days after mailing, under KRS Section 514.040.[1]
- Statute citationKRS Section 514.040, theft by deception[1]
Lending rules in Kentucky: Kentucky lending laws.
Related loan rules: Payday loans in Kentucky.
Common questions
Is writing a bad check always a crime in Kentucky?
No. Kentucky Revised Statutes Section 514.040 requires that the writer knew the check would not be paid. A bank error or an honest mistake about an account balance does not by itself meet that standard, especially if the writer makes the check good within the notice period the statute allows.
What happens if I pay the check after I get notice it bounced?
Under Kentucky Revised Statutes Section 514.040, paying within the notice period can prevent the law's presumption that the writer knew the check would not be paid. Making a check good promptly after notice is one of the clearest ways to avoid a theft by deception charge.
Can a business charge extra for a bounced check in Kentucky?
Yes. The statute allows a business that accepted a dishonored check to charge a capped service fee for handling it, instead of leaving the fee open ended. The amount a business can charge is limited rather than left to its discretion.
Where can I get help if I am facing a bad check charge in Kentucky?
Legal aid organizations serving Kentucky can advise on a theft by deception case under Kentucky Revised Statutes Section 514.040. The Kentucky Attorney General's consumer resources and the statewide referral line can also point you toward local assistance.
Sources
- Kentucky Legislative Research Commission. KRS Section 514.040, Theft by deception.