What North Carolina law says about worthless checks
Under North Carolina General Statute 14-107, it is a crime to write a check knowing there are not enough funds in the account to cover it. The statute sets a threshold that separates lower-level offenses from more serious ones, and it also addresses repeated conduct and checks written on accounts that do not exist or were closed. The amount shown in the Key facts section on this page marks where the more serious tier begins. North Carolina General Statute 25-3-506 separately allows a payee to collect a processing fee on a returned check, with the amount shown in the Key facts section on this page.
Misdemeanor and felony tiers
Under North Carolina General Statute 14-107, most worthless checks at or below the statutory threshold are treated as a Class 3 misdemeanor. The same statute raises the offense to a Class 1 misdemeanor when the account does not exist, when the drawer or the bank closed the account, or on a fourth or later conviction under that section. Checks above the threshold the statute sets can be charged at a felony level. These are consequences the statute itself sets out, not a penalty BadCreditMD imposes or predicts for any individual case.
Notice and the chance to pay
North Carolina General Statute 14-107 and related provisions give context for how a worthless check charge can arise after a bank returns an item for insufficient funds. Anyone who receives a notice about a bad check should read it carefully and respond by the date it gives, since ignoring a notice can allow a case to move toward criminal charges or added fees. If you are unsure what a notice means or what is being demanded, legal aid or a consumer protection resource can help you understand your options before a deadline passes.
Where to get help in North Carolina
If you have received a bad check notice, are being asked to pay a processing fee, or are worried about a pending charge, several North Carolina resources can help. The North Carolina Office of the Commissioner of Banks oversees consumer finance matters in the state. The North Carolina Department of Justice takes consumer complaints, the Consumer Financial Protection Bureau takes complaints about financial companies, and Legal Aid of North Carolina offers legal help to people who qualify. The National Foundation for Credit Counseling can connect you with nonprofit credit counseling, and your local community help line can point you to local resources, including benefits assistance through North Carolina's ePASS system.
Borrowing instead of writing a bad check
If money is tight and you are considering writing a check you are not sure will clear, borrowing may be a safer option than risking a criminal charge. Installment loans are allowed under North Carolina law under North Carolina General Statutes 53-164 to 53-191 and 53-166, and lenders offering them are overseen by the North Carolina Office of the Commissioner of Banks. Payday loans and title loans are not allowed under North Carolina law. Before borrowing, review the cost example on this page and ask the lender about the APR, the repayment period, and the total number of payments. BadCreditMD is not a lender or broker. A lending network partner shares requests with lenders. Lenders set their own rates and decide whether to lend.
Key facts
| Measure | Figure |
|---|---|
| Felony threshold amount[1] | $2,000Year 2026 |
| Service fee maximum[2] | $35Year 2026 |
- Misdemeanor penaltyUnder North Carolina law, writing a worthless check for 2,000 dollars or less is generally a Class 3 misdemeanor, rising to a Class 1 misdemeanor if the account is nonexistent or was closed by the drawer or bank, or on a fourth or later conviction under this section.[1]
- Statute citationN.C. Gen. Stat. Section 14-107[1]
Lending rules in North Carolina: North Carolina lending laws.
Related loan rules: Payday loans in North Carolina.
Common questions
Does a bad check become a felony automatically in North Carolina?
No. Under North Carolina General Statute 14-107, the amount of the check determines whether it is charged as a misdemeanor or at a felony level, and the specific threshold is shown in the Key facts section on this page. A single incident below that threshold is generally treated as a Class 3 misdemeanor unless other factors, like a closed or nonexistent account, apply.
Can a store or landlord charge a fee for a bounced check in North Carolina?
Yes. North Carolina General Statute 25-3-506 allows a payee to collect a processing fee on a check that is returned for insufficient funds or because the account does not exist, up to the amount shown in the Key facts section on this page.
What should I do if I get a letter about a bad check?
Read the notice carefully and respond before any deadline it states. If you are not sure what it requires or whether the fee or charge is accurate, North Carolina legal aid or the North Carolina Office of the Commissioner of Banks can help you understand your rights.
Are payday loans an option in North Carolina instead of writing a bad check?
No. Payday loans are not allowed under North Carolina law. Installment loans are allowed under North Carolina law and are one option to consider instead, subject to the lender's own terms.
Sources
- North Carolina General Assembly. GS 14-107 - Worthless checks; multiple presentment of checks.
- North Carolina General Assembly. GS 25-3-506 - Collection of processing fee for returned checks.
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.