Check Laws in Colorado (2026): Penalties, Fines, and Civil Consequences

Most people don’t realize how serious Colorado takes bad check laws. Seriously. Whether you accidentally bounce a check or intentionally write one knowing there’s no money to cover it, you could face criminal charges AND civil penalties. Let’s break down exactly what you need to know.

Colorado has two main check laws. One deals with criminal penalties. The other covers civil damages. Both can hit your wallet hard. And honestly, the rules might surprise you.

What Are Bad Check Laws?

Bad check laws protect people and businesses from getting scammed with worthless checks. A bad check is any check that bounces because there’s not enough money in the account to cover it. Simple as that.

Colorado splits bad checks into two categories. The first is issuing a bad check. The second is check fraud. The difference matters a lot for the penalties you face.

Issuing a Bad Check vs. Check Fraud

Here’s where things get important. Colorado law treats these differently.

Issuing a bad check means you wrote a check knowing you didn’t have enough money. You knew the account was empty or closed. But you didn’t intend to steal anything. This is covered under CRS 18-5-512.

Check fraud is more serious. This means you wrote a bad check with the intent to defraud someone. You planned to get goods or services without actually paying for them. That falls under CRS 18-5-205.

Wondering if this applies to you? The key word is “knowing.” Did you know the money wasn’t there?

When Does Colorado Presume You Knew?

Colorado law makes some assumptions. The state presumes you knew your check was bad if either of these things are true.

First, you had no bank account at all. The routing and account numbers on the check were fake or belonged to a closed account.

Second, your account didn’t have enough money when the check was presented. And it stayed unpaid for 30 days after you wrote it.

One important note here. If you postdate a check, Colorado won’t automatically assume you knew it was bad. That’s different from many situations.

Criminal Penalties for Issuing a Bad Check

Okay, let’s talk about what happens if you get caught. For simply issuing a bad check without intent to defraud, you’re looking at a petty offense.

The penalties include up to 10 days in jail. You could also face fines up to $300. Plus, you’ll probably need to pay restitution to whoever got stuck with your bad check.

This changed in March 2022. Before that, issuing a bad check was a class 3 misdemeanor. The penalties were tougher back then.

Check Fraud Penalties

Now, here’s where it gets serious. Check fraud carries much harsher penalties. The exact charge depends on the amount of money involved.

For checks under $300, it’s a petty offense. You’re looking at similar penalties to issuing a bad check.

For checks between $300 and $1,000, you face a class 2 misdemeanor. That means up to 120 days in jail and fines up to $750.

Between $1,000 and $2,000? That’s a class 1 misdemeanor. You could spend up to 18 months in jail and pay fines up to $5,000.

Hold on, this part is important. Once the check amount hits $2,000 or more, you’re in felony territory.

$2,000 to $5,000 is a class 6 felony. The penalties include 12 to 18 months in jail. Fines can reach $100,000.

$5,000 to $20,000 is a class 5 felony. You’re looking at 1 to 3 years in prison. Same $100,000 maximum fine.

$20,000 to $100,000? Class 4 felony. 2 to 6 years in prison. Fines up to $500,000.

$100,000 to $1 million is a class 3 felony. 4 to 12 years in prison. Fines can hit $750,000.

Over $1 million? That’s a class 2 felony. You could spend 8 to 24 years in prison. Fines max out at $1 million.

Multiple Checks Add Up

Here’s something most people don’t know. Colorado can combine multiple bad checks into a single charge.

If you write two or more bad checks within 60 days, the state adds up the total. They charge you based on that combined amount. Three checks for $800 each? That’s $2,400 total. You’re facing felony charges.

Special Fraud Situations

Some situations automatically make things worse. If you opened a checking account using fake ID or a false name just to write bad checks, that’s a class 2 misdemeanor all by itself.

If the check was written on an account that didn’t exist or had been closed for 30 days or more, that’s automatically a class 6 felony. No matter the amount.

Civil Damages: The Other Shoe Drops

Wait, it gets worse. Even if you avoid criminal charges, you can still face civil penalties. And these can be brutal.

Colorado law CRS 13-21-109 lets people sue you for damages. They have three options for calculating what you owe.

Option one is the face amount of the check plus actual damages. This includes any fees the bank charged them.

Option two is the check amount plus a reasonable service charge. This can’t exceed $20. If they hire a collection agency, they can add 20% of the check amount but at least $20.

Option three is the big one. If they send you proper notice and you don’t pay within 15 days, they can sue for triple damages.

Triple Damages Explained

Yep, that’s right. Three times the check amount. But there’s a minimum. Even if your check was only $10, they can collect at least $100.

So if you wrote a $500 bad check and ignored the notice, you could owe $1,500. Plus court costs. Plus attorney fees.

Personally, I think this law makes sense. It discourages people from just blowing off bad checks.

What Notice Do They Need to Send?

The notice must include specific information. It needs to state the check bounced. It must show the check amount. It has to demand payment of the total amount due.

The notice must explain you have 15 days to pay. It needs to warn you about the triple damages if you don’t pay. And it must mention potential court costs and attorney fees.

Here’s where it gets interesting. The person or business doesn’t have to run the check through your account a second time. They can go straight to collections or court.

How to Handle a Bad Check Situation

Okay, pause. If you’ve written a bad check, here’s what you should do.

First, contact the person or business immediately. Don’t wait for them to contact you. Explain what happened. Most people appreciate honesty.

Second, make arrangements to pay the full amount. Include the check amount plus any fees. Get it in writing.

Third, pay as quickly as possible. The 15-day notice period is real. After that, you’re facing triple damages.

Fourth, if you can’t pay everything at once, ask about a payment plan. Many businesses will work with you if you’re upfront and honest.

Fifth, consider getting legal advice if the amount is large. An attorney might help you negotiate or understand your options.

Defenses to Bad Check Charges

Not sure what counts as a valid defense? Let me break it down.

You might have a defense if you honestly didn’t know the funds were insufficient. Maybe you thought your paycheck had cleared. Or you believed money would transfer from savings.

Bank errors can be a defense too. If the bank made a mistake that caused the check to bounce, you’re not liable under the criminal statute.

You might also have a defense if you placed a stop payment on the check. This shows you realized there was a problem and tried to fix it in good faith.

What About Post-Dated Checks?

Post-dating a check gets special treatment. If you write a check dated for next month, Colorado won’t presume you knew it was bad.

Think of it like this. You’re basically saying “don’t cash this until the date shown.” You’re not trying to deceive anyone.

But this only works if you actually post-date the check. Writing today’s date when there’s no money? That’s different.

Collection Agency Rules

Once a collection agency gets involved, things change. They can charge additional fees. 20% of the check amount is standard. But that’s at least $20 minimum.

These agencies can also add their actual collection costs. Phone calls. Letters. Legal fees if they file a lawsuit. All of this can stack up fast.

Pretrial Diversion Programs

Some people qualify for pretrial diversion. This lets you avoid a conviction. You complete certain requirements instead of going to trial.

Requirements usually include paying full restitution. You pay back the check amount plus any fees. You might also need to complete classes or community service.

Successfully finish the program and the charges get dismissed. Your record stays cleaner. But you still have to make everyone whole financially.

Who Can File Charges?

Both criminal and civil actions can hit you. The district attorney handles criminal charges. The person or business you wrote the check to handles civil claims.

Law enforcement can investigate. Sheriffs. Police officers. District attorneys. They can all get bank information about your account without your permission when investigating bad check crimes.

Banks won’t face liability for sharing this information. The law protects them when they cooperate with investigations.

Recent Changes to Colorado Law

These laws changed in March 2022. Before that, penalties were structured differently. Issuing a bad check used to be a class 3 misdemeanor instead of a petty offense.

The threshold amounts for check fraud also adjusted. The current structure took effect March 1, 2022 under Senate Bill 21-271.

If your case happened before March 2022, different penalties might apply. Talk to a lawyer about which version of the law affects your situation.

Protecting Yourself as a Check Recipient

On the flip side, what if someone gives you a bad check? You have options.

First, try contacting them directly. Give them a chance to make it right. Many people are embarrassed and will pay up quickly.

Second, send the required legal notice. Use certified mail. Include all the information the law requires. Keep copies of everything.

Third, wait the full 15 days. Don’t jump the gun. Give them time to respond.

Fourth, if they don’t pay, consider your options. Small claims court works for smaller amounts. Hire an attorney for larger sums. Or use a collection agency.

Fifth, document everything. Keep the bounced check. Save all correspondence. Track every phone call. This helps if you end up in court.

Can Minors Face Check Fraud Charges?

Yes, minors can face charges. Age matters for penalties. But if there’s evidence a minor knowingly wrote bad checks, they can be charged.

The court looks at intent. Did the minor understand what they were doing? Courts consider age when determining liability.

Statute of Limitations

Check fraud cases generally have a three-year statute of limitations. This means charges must be filed within three years of the offense.

For civil claims, the timeline might differ. Talk to a lawyer if you’re worried about old bad checks coming back to haunt you.

What Happens to Your Credit?

Bad checks can wreck your credit. Collection agencies report to credit bureaus. Judgments show up on credit reports. This affects your ability to get loans, rent apartments, or even get some jobs.

A single bad check might not seem like a big deal. But the consequences can follow you for years.

Identity Theft and Check Fraud

Sometimes check fraud involves identity theft. If someone used another person’s information to write bad checks, both crimes apply.

Identity theft can be a felony or misdemeanor in Colorado. It depends on the circumstances. This adds extra charges on top of the check fraud itself.

Writing Checks on Closed Accounts

This is automatic felony territory. If your account was closed for 30 days or more when you wrote the check, you’re facing a class 6 felony minimum.

It doesn’t matter if the check was only for $50. The law treats writing checks on long-closed accounts as serious fraud.

Business vs. Personal Checks

The law applies to both business and personal checks. A business owner who writes bad checks faces the same penalties as individuals.

Corporate shields don’t protect you from personal criminal liability. If you signed the check knowing it was bad, you’re personally responsible.

Frequently Asked Questions

What happens if I accidentally write a bad check? Contact the recipient immediately and make payment arrangements. If you act quickly and honestly, you can often avoid criminal charges. The key is showing it was a genuine mistake, not intentional fraud.

How long do I have to pay after receiving a notice? You have 15 days from when the notice was given. After that, the recipient can sue for triple damages plus court costs and attorney fees. Don’t wait.

Can I go to jail for a $100 bad check? For a check under $300 with no intent to defraud, you face a petty offense with up to 10 days in jail and $300 in fines. With intent to defraud, even small amounts can result in jail time.

What’s the difference between issuing a bad check and check fraud? Issuing a bad check means you knew the money wasn’t there but didn’t intend to defraud anyone. Check fraud requires intent to defraud. The penalties for fraud are much harsher.

Will a bad check show up on my criminal record? If you’re convicted, yes. A petty offense shows up. Misdemeanors and felonies definitely appear on background checks. Pretrial diversion programs can help you avoid a conviction on your record.

Final Thoughts

Colorado takes check laws seriously. The penalties can range from small fines to years in prison. Civil damages can triple the amount you owe. And your credit can take a major hit.

If you’ve written a bad check, deal with it immediately. Don’t ignore notices. Don’t assume it’ll go away. The consequences only get worse with time.

On the other hand, if someone’s given you a bad check, follow the proper procedures. Send the required notice. Document everything. And don’t hesitate to pursue your legal remedies.

Now you know the basics. Stay informed, keep your checking account balanced, and when in doubt, talk to a lawyer before the situation gets worse.

References

1. Colorado Revised Statutes 18-5-512: Issuance of Bad Check – https://codes.findlaw.com/co/title-18-criminal-code/co-rev-st-sect-18-5-512.html
2. Colorado Revised Statutes 18-5-205: Fraud by Check – https://codes.findlaw.com/co/title-18-criminal-code/co-rev-st-sect-18-5-205/
3. Colorado Revised Statutes 13-21-109: Recovery of Damages for Checks Not Paid Upon Presentment – https://codes.findlaw.com/co/title-13-courts-and-court-procedure/co-rev-st-sect-13-21-109/
4. Colorado Criminal Defense Law: Bad Checks – https://www.shouselaw.com/co/defense/laws/bad-checks/
5. Colorado Criminal Defense Law: Check Fraud – https://www.shouselaw.com/co/defense/laws/check-fraud/