Some people still have this misplaced confidence in the deterrent effect of Batas Pambansa (”B.P.“) Blg. 22, also known as the Bouncing Checks Law. Here are some things a layman should know:
1. The issuer is not automatically liable simply because the check “bounced”. A check generally “bounces” when dishonored upon presentment (reasons include, account closed, drawn against insufficient funds or DAIF). However, it is indispensable that the issuer must be notified in WRITING about the fact of dishonor, and he has 5 days from receipt to pay the value of the check or make arrangements for the payment thereof.
2. Filing fees are generally not required for criminal cases. For B.P. 22 cases, however, the complainant is required to pay the filing fees (based on the value of the check/s and the damages claimed, just like in civil cases) upon filing of the case in court.
3. One major deterrent against bouncing checks is the threat of a warrant of arrest being issued once the criminal case is filed in court. This is no longer true. No warrant of arrest is issued unless the accused fails to appear when required by the court.
4. Even if a criminal case under B.P. 22 is filed, the court can’t issue a hold-departure order (HDO). All violations of the Bouncing Checks Law, regardless of the amount involved, are filed only with the municipal/metropolitan trial courts. These courts cannot issue an HDO.
5. Courts have the discretion of imposing: (a) imprisonment only; (b) fine only; OR (c) both. It is entirely possible that only a fine, without imprisonment, is imposed.
On the other hand, just like in any aspects of business, high vigilance is required because check frauds are prevalent. In my experience working with banks, I have seen really clever forgeries and fraudulent schemes. Some cases are difficult to detect, yet some could have been prevented by simple vigilance.
1. Never accept a second-endorsement check. Mr. A issues a check to pay Mr. B (payee), and Mr. B uses the same check to pay Mr. C. That is a second-endorsement check. It’s so risky that banks, as a rule, do not accept this kind of checks.
2. Be careful with crossed checks (with diagonal lines in one corner). It’s good only for the one named as the payee and it can only be deposited by said payee with a bank where he has an account.
3. Always reconcile your record at the end of each month. Banks send statements; if they do not, ask them. Many fraudulent activities can be prevented or minimized by simple bookkeeping. This is really basic, yet the Supreme Court had to repeat this reminder in many cases.
