Program gives second chance to make good on bad checks

NORFOLK

Bad checks will bounce back to their writers under a new program from the commonwealth's attorney's office and a national agency.

Called BounceBack, the program allows people who write bad checks to avoid prosecution if they make good on the amount. That's a big benefit for the check writer: Bad checks for $200 or more could result in a felony conviction; lesser amounts, a misdemeanor.

"A felony conviction affects voting rights and employability," prosecutor Carol Marx said. In addition to a criminal record, those prosecuted for writing bad checks could also face court costs and fines, as well as legal fees.

The check writers are also required to complete a financial education course to avoid prosecution.

Businesses reap a benefit, too: They can recoup the amount of the check without sending an employee to court.

Marx said the program is free to merchants and the commonwealth's attorney's office. According to the program Web site, bad check writers pay all the costs.

Participating merchants must notify a bad check writer of the insufficient funds and allow five days to make it good. After that the business can submit the check to BounceBack, which tries to collect.

Pat Frost, vice president of operations for BounceBack, a for-profit company based in Kansas City, Mo., said the company works with 15 commonwealth's attorneys' offices in Virginia, including Virginia Beach, Hampton, Newport News, Williamsburg, and York and James City counties.

Since August, BounceB ack has received 189 bad checks from the 77 Norfolk merchants who have signed up, he said.

"We've paid on 95 of those checks," Frost said, for a recovery rate of about 50 percent so far. Merchants also receive a "victim fee" of $25. BounceB ack does not make money until the merchant has been paid the full value of the bad check, Frost said. After that, BounceBack collects a program fee of $30 from the check writer, as well as fees for educational materials.

The program is not intended for habitual bad check writers.

Rather, Frost said, it's often "young people with new checkbooks" who wind up bouncing a check and ignoring a notice to pay. That's why the program includes a course on money management.

"Young, old, first time with a checking account - we all make mistakes," Frost said.

Michelle Washington, (757)

446-2287, michelle.washington@pilotonline.com