What legal steps can I take if someone issues a bounced check in the Philippines?

In the Philippines, issuing a bounced check is a serious matter, governed primarily by the Batas Pambansa Blg. 22, also known as the Bouncing Checks Law. This law aims to prevent the circulation of worthless checks and protect the public from being defrauded. Here's a comprehensive look at the legal recourse available if someone issues a bounced check.

Understanding Batas Pambansa Blg. 22

Batas Pambansa Blg. 22 makes it illegal to issue a check knowing that it will not be honored by the bank. The law applies when a check is dishonored due to insufficiency of funds or if the account has been closed. The key elements of this offense include:

Issuance of a Check: The person must have issued a check as a form of payment.
Knowledge of Insufficient Funds: The issuer knew or should have known that there were insufficient funds in the account or that the account had been closed.
Dishonor of the Check: The check is subsequently dishonored by the bank upon presentation.

Legal Steps to Take

Notice of Dishonor: Once a check bounces, the first step is to send a formal notice of dishonor to the issuer. This notice should be in writing and delivered to the issuer's last known address. It must state that the check was dishonored and demand payment within five days from receipt of the notice.
Filing a Criminal Complaint: If the issuer fails to settle the amount within the specified period, you can file a criminal complaint for violation of Batas Pambansa Blg. 22. This complaint should be filed with the appropriate Office of the City Prosecutor or Municipal Trial Court. The following documents are typically required:
- A copy of the dishonored check.
- The notice of dishonor and proof of delivery.
- A sworn statement detailing the transaction and the circumstances leading to the issuance of the check.
Court Proceedings: Upon filing the complaint, the prosecutor's office will conduct a preliminary investigation. If probable cause is found, the case will proceed to trial. The court will then determine the guilt of the issuer. Conviction under Batas Pambansa Blg. 22 can result in imprisonment of up to one year or a fine not exceeding twice the amount of the check, or both.
Civil Actions: In addition to criminal liability, you may also file a civil action to recover the amount of the bounced check. This action seeks to obtain a judgment ordering the issuer to pay the amount due, along with any damages incurred as a result of the dishonor.

Defenses and Exceptions

The issuer of a bounced check may raise several defenses, such as:

Lack of Knowledge: The issuer had no knowledge of insufficient funds.
Payment Made: The issuer settled the amount before the notice of dishonor was issued.
Force Majeure: Circumstances beyond the issuer’s control prevented the check from being honored.

However, these defenses must be substantiated with concrete evidence to be considered by the court.

Preventive Measures

To avoid dealing with bounced checks, consider the following preventive measures:

Verification: Verify the credibility and financial stability of the person or entity issuing the check.
Partial Payments: Request partial payments in cash or through secure electronic transfers.
Contracts: Include clauses in contracts that stipulate penalties for issuing bounced checks.

Conclusion

Issuing a bounced check in the Philippines is a punishable offense under Batas Pambansa Blg. 22. If faced with a bounced check, it is crucial to act promptly by sending a notice of dishonor and considering both criminal and civil remedies. Understanding your rights and the legal processes involved can help ensure that you receive the payment owed and hold the issuer accountable.