Ok, I know this sounds really bad and dishonest. But a couple of times, I have written a couple checks to my OPEN account to myself from an old CLOSED account (I still had the checkbook after I closed it) to avoid overdraft fees. For example, I have $50 in my account, I don't get paid for 2 more days. I know tomorrow a transaction for $55, $3, $10, etc. is going to go through. Well if I ride it out, bam! I get over $100 in overdraft fees. If I write a bad check however, this covers me until I get paid, then the check comes back as "closed account" and they assess me a $19.99 chargeback fee.
Can they do anything to me? It is not like I am defrauding anyone, except myself, and my current bank as far as them not earning any "overdraft fees" on me... I know this is dishonest but nothing has ever happened to me so I am wondering if this could affect me at a future date?
I believe the transaction you mention is called 'kiting' and if it has a name, then you know someone else has been found out doing it too and probably got into some trouble, although I don't know what the outcome would be.
This is illegal. Best way is to just live within your means and stop this habit of yours. You are willing to pay a $20 chargeback fee for each check you kite. What sort of rationale are you using to keep paying a $20 chargeback fee? Wouldn't it be more sensible and economical to just wait until the money is in your account and then write a check? How many times a month do you do this? Makes no sense to me whatsoever why you would entertain throwing your money away like that in $20 increments.
Well, to be honest, I have a gambling problem. So it's either overdraft fees close to $200 or $20. I have quit gambling for over 2 months. Now, and my bank account is finally in the black, so I don't plan on being stupid again, but just wondering if they haven't said anything already, am I in the clear? I mean, can they file charges a year later? The checks were all $500 and under.
The bank is making money off you. But since the checks are written from a non-existent account, and not an insufficient fund problem, the fraud is documented in writing in your own handwriting. If you have already been charged a fee from the last episode, you might be OK. They might get sick of it at any time and press charges.
Writing checks on a closed account is not illegal! The uuc1- Uniform Commercial Code places US ALL, in the same position to discharge debt. Simply reserve the routing numbers on your UCC1 and since HJR192-House Joint Resolution 192, gives us the ability to use closed checks on open accounts, will balance to ZERO at the close of ANY BUSINESS DAY. WHY? The Form 1120 is used to "cover 'BAD' checks". The IRS issues this to small Trust CO. and it allows them to settle ALL COMMERCIAL TRANSACTIONS.
writing checks on a closed account is not illegal! the uuc1- Uniform Commercial Code places US ALL, in the same position to discharge debt. Simply reserve the routing numbers on your UCC1 and since HJR192-House Joint Resolution 192, gives us the ability to use closed checks on open accounts, will balance to ZERO at the close of ANY BUSINESS DAY. WHY? The Form 1120 is used to "cover 'BAD' checks". The IRS issues this to small Trust CO. and it allows them to settle ALL COMMERCIAL TRANSACTIONS.
What the heck are you talking about? I have no idea why this is your one and only post and in NY it IS a crime to write a check on a closed account.
Yes it is illegal to write checks from a closed account. I have much experience with this. I had a really bad drug problem and would write checks from an old closed account, for 100 dollars each, deposit them into my new open checking account, obviously previously empty, and then withdrawl 100 dollars. And I would do this basically until the system automatically put a hold on my account (it would stop allowing me to withdrawl money after I deposited the last check)... banks vary with how many times the system will allow one to deposit checks and then withdrawl the amount you just "deposited"... bank of america only let me do two and then cut me off after the third... but the credit union, on the other hand let me do it six times, then cutting me off after I deposited the seventh check. Needless to say, this is quite illegal and you will most likely be contacted by the bank on the next business day with news that they are required to contact the local authorities... the last time I did it, which was at the credit union, I was arrested a couple weeks later on a different charge. When I asked the arresting detective about my check fraud and if I would be arrested on that, he chuckled and said, "no, not yet, but you should pay that back as soon as you can". So moral of the story is, yes it is illegal, no its not at the top of law enforcement agenda and by the time you were arrested for it, you would have had, I would estimate, a minimum of a month to make good on it.
Although technically you may have violated the law, the bank won't prosecute since you've repaid promptly enough, but it could close your account for cause and report it to ChexSystems if you keep it up. Also be aware that most banks today reorder debits on the same business day in largest-to-smallest order, so that the chargeback comes first and you wind up with multiple overdraft fees anyway.
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