How to read the numbers here
New Jersey's bad check rules work in two ways. A civil demand under N.J.S.A. 2A:32A-1 gives a maker 35 days after a certified mail notice to pay before statutory damages apply, with a court able to waive them for economic hardship. A criminal charge under N.J.S.A. 2C:21-5 scales from a disorderly persons offense to a second degree crime as the check amount rises. For borrowing instead of risking a bad check, installment loans are allowed under New Jersey law, while payday and title loans are not. The New Jersey Department of Banking and Insurance (DOBI), Legal Services of New Jersey, and your local community help line can all help if you are under pressure.
How New Jersey defines a bad check
Under N.J.S.A. 2C:21-5, writing or passing a check knowing there are not enough funds or that the account does not exist is a bad check offense. The law scales the seriousness of the charge with the amount of the check: the smallest checks are a disorderly persons offense, and the charge moves up through fourth, third and second degree crimes as the amount written on the check rises past thresholds the statute sets. The exact dollar thresholds for each tier appear in the Key facts section on this page.
The 35 day notice before civil damages
Before someone can pursue civil damages for a dishonored check, New Jersey law requires the payee to mail a demand for payment by certified mail to the maker's last known address, printed in both English and Spanish, under N.J.S.A. 2A:32A-1. The maker then has 35 days to pay the face amount in cash or with a cashier's or certified check. If payment is not made within that window, the maker can become liable for the check amount, attorneys' fees, court costs, mailing costs, and statutory damages set by the law, capped at an amount the statute sets above the check amount. A court or jury may waive all or part of those statutory damages if paying them would cause economic hardship, so a maker who is struggling should say so if the matter reaches court.
Notice and intent in a criminal case
For the criminal offense under N.J.S.A. 2C:21-5, prosecutors generally rely on a legal presumption that the person issuing the check knew it would not be paid, which applies when there was no account at the bank or when the check was refused for insufficient funds or a closed account after it was deposited or presented within 46 days of being issued. That presumption only holds if the person did not make the check good within 10 days after receiving notice that it was refused, and the notice can be given orally or in writing and sent to the person's last known address. This presumption of knowledge does not apply to a post-dated check, so timing and the type of check both matter to how a case is handled.
Borrowing instead of writing a check you cannot cover
If money is tight before a check clears, it helps to know what short-term borrowing looks like in New Jersey. An installment loan is allowed under New Jersey law under N.J.S.A. 17:11C-32, 17:11C-41 and N.J.S.A. 2C:21-19, and lenders offering one answer to the New Jersey Department of Banking and Insurance (DOBI). Payday loans and title loans are not allowed under New Jersey law under N.J.S.A. 2C:21-19 and, for payday loans, N.J.S.A. 17:15A-1 et seq. If you are weighing borrowing against writing a check you are not sure will clear, look at an installment loan request and the cost example on this page rather than assume a payday or title loan is an option here.
Where to get help in New Jersey
If a bad check or a looming payment is putting pressure on your budget, New Jersey residents can reach the New Jersey Division of Consumer Affairs to file a complaint, the Consumer Financial Protection Bureau for complaints about a lender or collector, Legal Services of New Jersey for legal help, the National Foundation for Credit Counseling agency finder for nonprofit credit counseling, the state benefits screening site for benefits you may qualify for, and your local community help line for referrals near you. Reaching out before a 35 day notice period runs out can open up more options than waiting.
Key facts
- Civil damages ruleA maker who does not pay a dishonored check within 35 days after a demand is mailed by certified mail owes the check amount plus attorneys' fees, court costs, mailing costs and damages of $100 or triple the check amount, whichever is greater, but the damages cannot exceed the check amount by more than $500, under N.J.S.A. 2A:32A-1. A court or jury may waive all or part of the statutory damages for economic hardship.[1]
- Criminal threshold amountA bad check under $200 is a disorderly persons offense; $200 up to $1,000 is a crime of the fourth degree, $1,000 up to $75,000 is a crime of the third degree, and $75,000 or more is a crime of the second degree, under N.J.S.A. 2C:21-5(c) ($200).[2]
- Notice periodThe maker has 35 days after the payee mails a demand for payment by certified mail to the maker's last known address to pay the face amount in cash or by cashier's or certified check. The demand is printed in both English and Spanish, under N.J.S.A. 2A:32A-1 (35 days).[1]
- Prosecution notice requirementAn issuer is presumed to know a check would not be paid if the issuer had no account with the bank, or if payment was refused for lack of funds or a closed account after deposit or presentation within 46 days after issue and the issuer did not make good within 10 days after receiving notice of the refusal or after notice was sent to the issuer's last known address. Notice may be given orally or in writing, under N.J.S.A. 2C:21-5. The presumption does not cover post-dated checks.[2]
- Statute citationN.J.S.A. 2C:21-5, bad checks[2]
- Treble damagesCivil damages are $100 or triple the check amount, whichever is greater, but may not exceed the check amount by more than $500, under N.J.S.A. 2A:32A-1 (3 times).[1]
Lending rules in New Jersey: New Jersey lending laws.
Related loan rules: Payday loans in New Jersey.
Common questions
Can I go to jail for a bad check in New Jersey?
The criminal charge under N.J.S.A. 2C:21-5 ranges from a disorderly persons offense up to a second degree crime depending on the amount of the check, and the more serious tiers under New Jersey law can carry significant consequences beyond repaying the check. The exact thresholds for each tier are in the Key facts section on this page.
Does a post-dated check get the same treatment as a regular bad check?
No. The legal presumption that a person knew a check would not be paid, which prosecutors rely on under N.J.S.A. 2C:21-5, does not apply to a post-dated check, so these are handled differently from a check written to be cashed right away.
Can a court lower the civil damages I owe on a bad check?
Yes. Under N.J.S.A. 2A:32A-1, a court or jury may waive all or part of the statutory damages tied to a dishonored check if paying them would cause economic hardship, so it is worth raising your situation if the case goes to court.
Are payday loans an option in New Jersey if I am short on cash?
No. Payday loans are not allowed under New Jersey law under N.J.S.A. 2C:21-19 and N.J.S.A. 17:15A-1 et seq. An installment loan, which is allowed under New Jersey law, is a different option worth comparing instead.
Who enforces New Jersey's bad check and small lending rules?
The New Jersey Department of Banking and Insurance (DOBI) oversees lenders in the state, while bad check matters move through the courts and local prosecutors under N.J.S.A. 2C:21-5 and N.J.S.A. 2A:32A-1.
Sources
- New Jersey Legislature. New Jersey P.L.2014, c.46 (Assembly No. 1162), which quotes the operative text of N.J.S.A. 2A:32A-1, civil action for bad checks, as amended.
- New Jersey Legislature. New Jersey P.L.2014, c.45 (Assembly No. 1153), which quotes the operative text of N.J.S. 2C:21-5, bad checks, as amended.