Every time a merchant accepts a check in good faith, he / she expects to realize a profit and in return extends the customer a convenience. When that check is returned for reasons of, “insufficient funds” or “account closed”, the merchant not only suffers the loss of the expected profit, but he / she also loses the cost of the service or the item provided and also incurs an extra cost in accounting and collection fees. These costs are ultimately passed on to the consumer.
In Texas, it is unlawful to write a worthless check under Sections 31.06 and 32.41 of the Penal Code. These statutes deal with the direct exchange of a worthless check for goods and services and the mere introduction of a worthless check into commerce. The law allows anyone who has received a worthless check, regardless of the amount, to file charges with their local Justice Of The Peace.
- The Justice of the Peace then issues a warrant of arrest, which is sent to the Constable.
- The Constable’s Department subsequently has a Criminal Warrant Division that investigates and locates the offender and places the offender in custody.
- The offender then goes before the Justice of the Peace, who attempts to arrange restitution and payment of a fine.