Dishonored "Bad" Checks...a Debt?

[David A. Szwak]

Dishonored checks for consumer goods have been found to come within the FDCPA. Armstrong v. Rose Law Firm, P.A., 2002 U.S. Dist. LEXIS 4039 (U.S.D.C. Minn., Mar. 25, 2002); Ballard v. Equifax Check Servs., 158 F.Supp.2d 1163 (U.S.D.C. E.D. Cal. 2001); Newman v. CheckRite California, Inc., 912 F.Supp. 1354 (U.S.D.C. E.D. Cal. 1995); Narwick v. Wexler, 901 F.Supp. 1275 (U.S.D.C. N.D. Ill. 1995); Keele v. Wexler, 1995 WestLaw 549048 (U.S.D.C. N.D. Ill. 1995); Holmes v. Telecredit, 984 F.Supp. 1289 (U.S.D.C. Del. 1990); Johnson v. Statewide Collections, Inc., 778 P.2d 93 (Wyo. 1989); West v. Costen, 558 F.Supp. 570 (U.S.D.C. W.D. Va. 1983); In re Scrimpsher, 17 B.R. 999 (U.S.D.C. N.D. N.Y. 1982). Also, see: Cheqnet Systems, Inc. V. Montgomery, 911 S.W.2d 956 (Ark. 1995). Contra: Perez v. Slutsky, 1994 U.S. Dist. LEXIS 17711 (U.S.D.C. N.D. Ill. 1994). The U.S. Courts of Appeals for the Seventh, Eighth, Ninth, and Tenth Circuits have decided that a dishonored check written for personal, family, or household purposes is a “debtâ€