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Is bounced Cheque a criminal offence in Canada?

Leia Doyle

Is bounced Cheque a criminal offence in Canada?

You may be charged with an offence under the Criminal Code of Canada if you write a cheque when you know that there is not enough money in the account to cover the cheque. You may be prosecuted by summary conviction or by indictable conviction. The criminal offence is the obtaining of credit by false pretense.

Is a bounced Cheque a criminal offence?

Issuing a bounced cheque is a criminal offence.

What is the punishment in case of criminal offence of bouncing of a cheque?

The punishment for cheque bounce is imprisonment for a term not more than two years or a fine that can extend to twice the amount of the cheque or both. A civil suit can also be instituted against the drawer for payment of the cheque amount.

Do you get charged if a check bounces?

If your financial institution doesn’t cover the check, it bounces and is returned to the depositor’s bank. You’ll likely be charged a penalty for the rejected check; this is a nonsufficient funds fee, also known as an NSF or returned item fee. This costs about the same as an overdraft fee — around $35.

What happens if a cheque bounces Canada?

Non-sufficient Funds (NSF) If you deposit a cheque and there is not enough money in the cheque-writer’s account to cover the cheque, the cheque will be returned to your bank as NSF or non-sufficient funds. If your bank had given you immediate access to the funds, it will then remove the funds from your account.

How long does it take to clear a cheque in Canada?

The process for a cheque to clear and be returned for non-sufficient funds normally takes about four or five days, provided the cheque writer’s financial institution is located in Canada.

How will I know if a check bounces?

Compare the amount of your check against the available amount in your checking account. Deduct the check amount from your available balance in your checking account. If the value you get equals a negative amount or other you see that you have less in your account than the check was written for, your check might bounce.