Essential Facts About Checks! File a Police Report Within 3 Months or Hire a Lawyer Immediately

A “check” is a widely used financial instrument in business transactions and financial dealings in Thailand. Many people assume that once they receive a check, they can always cash it. However, checks have legal limitations, particularly regarding their “statute of limitations,” which is a crucial aspect that everyone should understand.

One of the most common mistakes is receiving a bounced check but failing to take legal action within the specified time frame, resulting in the loss of the right to claim the amount due. Therefore, if you receive a bounced check, you must act quickly—either by filing a police report within 3 months or hiring a lawyer to sue immediately.

What Is a Bounced Check?

A bounced check is a check that has been submitted for payment at the bank but has been rejected for reasons such as:

• Insufficient funds in the account
• The account has been closed
• The check issuer has stopped payment on the check
• Errors on the check, such as incorrect signatures or wrong dates

Regardless of the reason, if a check is dishonored, the recipient must take legal action as soon as possible.

Statute of Limitations for Checks – A Critical Deadline!

Under Thai law, the statute of limitations for a check is 3 months from the date the bank rejects the payment. If the recipient fails to take action within this period, they lose their right to claim the amount under check law.

After 3 months, legal action may still be taken under civil law, such as suing for outstanding debt, but this process can be more complex and time-consuming.

What to Do If You Are Defrauded by a Bounced Check?

When receiving a dishonored check, you have two main legal options:

1. File a Police Report Within 3 Months

If the check issuer knowingly issued the check without sufficient funds, this may be considered fraud. The check recipient can file a police report within 3 months to initiate criminal prosecution under the offense of “issuing a check without sufficient funds.”

🔹 Advantages of Filing a Police Report:
✅ Increases pressure on the check issuer to repay quickly
✅ The issuer may face criminal charges, encouraging them to settle the debt
✅ No personal legal fees involved in filing the complaint

🔹 Disadvantages of Filing a Police Report:
❌ The process can be time-consuming
❌ If the check issuer had no fraudulent intent, criminal charges may not apply

2. Hire a Lawyer and File a Civil Lawsuit Immediately

If you want to recover the money quickly, hiring a lawyer to file a civil lawsuit may be a better option. This eliminates the need to wait for a police investigation.

🔹 Advantages of Filing a Civil Lawsuit:
✅ Full control over the case, without relying on law enforcement
✅ If you win the case, you can enforce asset seizure for repayment
✅ Immediate legal action—no need to wait for a police investigation

🔹 Disadvantages of Filing a Civil Lawsuit:
❌ Legal fees for hiring a lawyer
❌ The court process can take time

Steps for Filing a Police Report or Lawsuit

📌 Filing a Criminal Complaint

1.Gather evidence, including the bounced check and the bank rejection notice.

2.Report the case at the police station with jurisdiction.

3.Provide details of the transaction and the issuer’s fraudulent behavior.

4.If the police determine fraudulent intent, they will proceed with the case.

📌 Filing a Civil Lawsuit

1.Consult a lawyer to review the case.

2.File a lawsuit with the court, submitting all relevant documents.

3.Attend court hearings and present the case.

4.If the court rules in your favor, enforcement actions like asset seizure may follow.

Tips for Check Recipients

✔ Act before the statute of limitations expires – decide quickly whether to pursue criminal or civil action.
✔ Keep all relevant documents, such as the bounced check, bank rejection notice, and transaction records.
✔ Verify the check issuer’s credibility – for new clients, request supporting documentation before accepting checks.
✔ Ensure check details are correct before accepting them (e.g., dates, amounts, and signatures).

Filing a Police Report VS Suing?

🔹 If you want to pressure the check issuer to pay quickly and suspect fraud → File a police report within 3 months.
🔹 If you want a more effective legal approach to recover your money and enforce repayment → Hire a lawyer and file a civil lawsuit immediately.

Taking swift and proper legal action will help you recover your money efficiently, avoid legal pitfalls, and protect your business. If you’re unsure, consult a lawyer immediately!