Expert: Ray A Miller - 10/27/2010

Question
QUESTION: I recently set up payments with a collection agency on my
prepaid debit card. On the date of the first payment, I
didn't have enough money on my card. They are now telling me
that since this happened twice I can go to jail. They're
saying it's just like a bounced check and that it's a felony
in my state!! Is this true?

ANSWER: In most states, the bad check laws pretrain to checks for a purchase, not for a payment on an account. They can not have you put in jail for this.  It would be best if you could catch them up or even pay them off with a settlement amount.

Please tell me which state you live in and I will let you know if there is any difference in my answer.

---------- FOLLOW-UP ----------

QUESTION: I live in Massachusetts. Sorry I didn't say that before! Does
that make a difference in your answer?

Answer
They have to send you the following letter:  http://www.lawdog.com/states/ma/checks.htm.

http://www.checkprogram.com/static_websites/suffolkcountyma/index.htm contains some interesting material.  First time offenders will not go to jail, just make the checks good.  The bad check laws still pretrain to purchase of goods and services and not payment on an account since the amount of the check can just be added back to the account.  To make sure you may want to contact the Attorney General in your state:  http://www.mass.gov/?pageID=cagohomepage&L=1&L0=Home&sid=Cago

I hope you find this helpful.