Cold Check Recovery Program
louisvilleky.gov
Tel. (502) 574-6336
FAX (502) 574-5366
Cold checks cost Metro businesses millions of dollars annually. Collecting payment for these checks is, at best, a time-consuming problem. At worst, they can be devastating to a small business, and account for higher prices for goods and services.
Unlawfully issuing a worthless check is a crime. The County Attorney’s Cold Check Recovery Program can help you collect payment for bad checks at no cost to you. Because it is a pre-trial diversion program, it helps keep down the costs of the judicial system. Also, it benefits the check writer by enabling restitution without criminal charges. However, if the check writer does not participate in the program, prosecution can begin.
The goal with the Cold Check Recovery Program is to get full payment for bad checks your business receives.
How the Cold Check Recovery Program Works
The County Attorney’s Cold Check Recovery Program returns money to the victims of bad checks, including bank fees. Check writers have strong motivation to cooperate, in order to avoid prosecution. For you, participation is easy.
You can mail the original check or bring it to our office. We retain the original check and a copy is made for your records.
A 10-day letter is issued to the check writer, stating that if the face value and fees are not paid within this period, criminal prosecution will begin.
These payments are to be made to our office only (NOT TO THE MERCHANT).
If payment is not received within two weeks, you should call our office and request that a warrant be printed. The merchant must then come into the office and sign the warrant.
Once the warrant is served, a pre-trial date will be set. Our office will attempt to collect the face value and fees of the check without your presence in court. However, if there is a trial, your testimony may be needed and a subpoena will be sent for your appearance as a witness for the Commonwealth.
For the checks that our office has collected (face value and all fees) a monthly reimbursement check will be sent to you.
Types of Checks That Qualify for the Cold Check Recovery Program
Checks stamped by the bank ACCOUNT CLOSED, NO ACCOUNT, UNABLE TO LOCATE and NONSUFFICIENT FUNDS (NFS).
For checks returned REFER TO MAKER, HELD FUNDS, OVERDRAFT, NO DEBITS ALLOWED, and UNAVAILABLE FUNDS, you must have a statement from the bank showing the status of the account on the date the check was issued.
Checks must show a bank cancelation within 30 days of the issue date on the check.
Prosecution of check writers should begin as soon as possible after the check was issued.
Checks must be less than one year old. The statute of limitations is one year for checks under $300.00
Ineligible Checks
post-dated or held checks
two-party checks
checks for which both parties knew there were insufficient funds at the time of the transaction
check was issued as a payment on a loan, as part of an agreement to pay on an open account
the identity of the check writer is unknown
there is no amount or signature on the check
For these types of checks, you may wish to pursue your case in Jefferson District Small Claims Court.
Guidelines for Accepting Checks
always get official photo identification
compare the ID photo to the check writer
record the correct address, birth date, operator’s license number, and gender
compare the signature on the ID with that on the check
never accept a counter check
verify the imprinted check address with the address on the ID
if you have a reservation about accepting a check, contact the issuing bank. You are under no obligation to accept the check
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