Bouncing Checks (B.P. 22)

Some people still have confidence, which confidence may be regarded as misplaced by others, in the deterrent effect of Batas Pambansa Blg. 22, also known as the “Bouncing Checks Law” (full text here). Here are some things a layman should know:

1. Filing fees are generally not required for criminal cases. For B.P. 22 cases, however, the complainant is required to pay the filing fee (based on the value of the check/s and the damages claimed, just like in civil cases) upon filing of the case in court.

2. One major deterrent against the issuance of bouncing checks is the threat of a warrant of arrest being issued once the criminal case is filed in court. This is no longer true. No warrant of arrest is issued unless the accused fails to appear when required by the court.

3. Even if a criminal case under B.P. 22 is filed, the court cannot issue a hold-departure order. All violations of the Bouncing Checks Law, regardless of the amount involved, are filed only with the municipal/metropolitan trial courts. These courts cannot issue a hold-departure order.

4. Courts have the discretion of imposing: (a) imprisonment only; (b) fine only; OR (c) both. It is entirely possible that only a fine, without imprisonment, will be imposed.

5. The issuer is not automatically liable simply because the check “bounced”. A check generally “bounces” when dishonored upon presentment (reasons include: account closed, drawn against insufficient funds or DAIF). However, it is indispensable that the issuer must be notified in WRITING about the fact of dishonor, and he has five (5) days from receipt of the written notice within which to pay the value of the check or make arrangements for the payment thereof. This is based on the 1999 decision of the Supreme Court in King vs. People of the Philippines (G.R. No. 131540).

Recently, the SC “appears” to have relaxed this ruling in the 2005 case of Yulo vs. People of the Philippines (G.R. 142762). In this case, the SC reiterated the elements or requisites of the offense penalized by BP 22:

(1) the making, drawing, and issuance of any check to apply for account or for value;

(2) the knowledge of the maker, drawer, or issuer that at the time of issue he does not have sufficient funds in or credit with the drawee bank for the payment of the check in full upon its presentment; and

(3) the subsequent dishonor of the check by the drawee bank for insufficient funds or credit or dishonor for the same reason had not the drawer, without any valid cause, ordered the bank to stop payment.

It is immediately clear that the “written notice” is not an element of the crime. In fact, in the Yulo case, the High Tribunal rejected the argument of the accused regarding the absence of a written notice, thus:

We likewise find no reason to sustain petitioner’s contention that she was not given any notice of dishonor. Myrna had no reason to be suspicious of petitioner. It will be recalled that Josefina Dimalanta assured Myrna that petitioner is her “best friend” and “a good payer.” Consequently, when the checks bounced, Myrna would naturally turn to Josefina for help. We note that Josefina refused to give Myrna petitioner’s address but promised to inform petitioner about the dishonored checks.

This ruling, however, did not categorically overturn the doctrine enunciated in the earlier King case. In other words, at this stage, both sides could logically argue either way.

(See also: Basic Reminders in Preventing Check Fraud)

51 thoughts on “Bouncing Checks (B.P. 22)

  1. patie

    Magandang hapon po..

    Nong may 2014 my kaibigan po ako na ofw,nag loan sya sa lending company,ginawa po akong co maker at pnag
    Open nla ako ng cheking account kahit wla akong account sa banko,at kahit alam nla na ang hanapbuhay ko ay gumagawa ng basahan.sa madaling slita nakautang ung kaibigan ko ng 40,k hagang nakaalis sya papuntang saudi,updated naman nakapaghulog sa banko ang kaibigan ko da pangalan ko papunta sa lending company hangang tntx nlang ako nong feb.20,2015 na my criminal case daw po ako at kailalan ko daw komontak sa legal lending company……..tinawagan ko kong bakit cla mananakot,kc daw ang kaibigan ko d na raw naghuhulog ng utang nya nong oct.2014
    Ang sagot ko,bkit pnatagal nyo ng feb 2015 ako takotin,dapat nong d na sya nakapagpadala tnawaga nla ako para magawan ko ng paraan na ma contact ko…
    Nalaman ko na pinauwi sya ng amo nya kc nagkasakit at d ko sya na conact …july 21,2015 nag txt ang lending na my criminal case at warant of arrest ako august 2015 at sept 2015 un parin panakot nla,ang sakin lang bakit ganun alam naman nla na hindi ako mismo ang utang bakt ako gusto nla ipakulong?hndi pa nacyahan tinawagan ung tiyahin ko at tntxt na ang utang ko daw ay 101,500k at huhulihin nlang ako ng pulis..
    Nong dec.2 2015 my notice domating sa address na nabigay ko sa kanila my un daw naghatid mula bakod hangang loob ng bahay pumasok na wlang phintulot ng tao na nasa loob ng bahay….nong mach 26,2016 my dating na bp22 case at ang arraignment sa april 19,2016 ang lending tumawag nong april 8,2016 sbi ko don nlang kami mag usap kc d narin nla pinakingan ang kaibigan ko na nalaman nla na nagkasakit at operasyon ang nanyari,ang sagot lang nla na ang kailangan ang perang mabayad at wla daw cla pakialam at upakulong daw kaming dalawa ng kaibigan ko….
    Inaasahan ko po ang inyong kasagutan
    Maraming salamat po!!!
    God bless!

    Reply
  2. Che

    Gud day. Question lng po..a friend po had a loan amount8ng to 60t d po sya nakabayad kasi nawalan trabaho abroad s isang lending s manila. Isang payment lang daw sya tpos wla nito november 2015 pinagbayad cla ng 48t ng lending and may 8t n payment bukid dito nahingi p cla full payment of 60t pta iurong daw ung kaso n d maibigay dahil wla nman sya trabaho pa tpos may kaso n pla ito a mtc hindi nila alam..nkaat3nd cla una hearing pero wla ang judge nung ikalawa d n sya nakapunta dahil bigla sya nkalakad s abroad. Gumawa sya ng spa s authorized rep. Nya at may abogado sya pra mkipag settle pero hindi daw ihonor ng judge ang gusto personal appearance kaya nag issue ng warrant of arrest. Papano po ang mangyayari nito s kaso nya. Smantalang meron nman po sya spa at represented nman po ng abogado

    Reply
  3. rosario

    hi po, ask ko lang kung ung bp22 ba ay puedeng maging ordinaryong utang n lang khit n hawak k ung mga cheke na inisue nila sa kin at tumalbog lahat….kc nag seek ako ng advice ng atty. ang sabi nya s kin klangan daw ung demand letter e personal ko n maiabot s kanya…..eh pano ko maiabot s nangloko s kin nagtatago n sya….kc daw kung ndi k daw maiabot ng personal s kanya ung demanda ko n bp22 ay mababalewala s huli mapupunta n lang daw s ordinaryong utang…..khit daw imail k ung demand letter ko n registered mail baliwala p din kelangan daw sya mismo makatanggap ng letter, khit daw matanggap ng wife nya or brother nya ung demand letter ndi daw ihonor ng court un….tama po ba ung sinasabi skin ng atty. n hiningan k ng advice…..masasayang lang daw ung mga gagastusin ko kc s bandang huli ndi maipapanalo n bp22 ung case, dhil lamang s demand letter n ndi sya tumanggap ng personal….magiging ordinaryong utang n lang daw po ung mga cheke n hawak ko….nag issue po kc sya s kin ng cheke kasama n ung tubo nag invest po kc ako s kanya s negosyo nya…..nong una ok nman po kalagitnaan clinosed account nya po ung mga tseke n binigay nya s kin…..nagtalbugan n po lhat 96k po lhat ung innisue nya skin….sana po matulungan nyo po k s problema ko…..thanks and GOD bless po

    Reply
  4. Nihc

    Hello po… naka pagloan po ako sa isang lending as one of the requirements need po mag open ng joint checking account with the comaker, due to financial problem after 4 payments po hindi nako na ka paghulog sa account until ngclosed un account due to insufficient fund. Nasabi po sakin ng comaker ko na may arrangement hearing daw po kami. Nasa attend sya ng arrangement hearing pero po ako hindi. Ma iissuhan po ba ako ng warrant.

    Reply
  5. tyron

    Good Day Sir/ma’am,

    May problema po ako sa saksakyan ko na pina assume. kasi lumipas ilang buwan hinde na nag bayad ang nag assume, bali nag bounce na ang check na binigay nya, ngayon dahil sa pangalan ko sa banko kasi car loan yun.. ako na nag bayad.. ano po dapat gawin- ang hawak namin ay SPA.. gusto sana kung hinde pa siya mag bayad ipa isauli or surender nalang sa banko, kaso ayaw niya, sabi nya gusto daw namin file a case nalang.
    hope maliwanagan nyo po ako anong dapat gawin..
    -kung hinde na ako makayad sa bank at kunin na ang sasakyan sa banko, makuha ko ba sa nag assume. kasi hinde rin siya nakabayad sa akin.

    Reply
  6. Emilene

    Hi po,
    Hinge lang po sana aq ng advice or idea about po sa sitwasyon nmin… Sana po matulungan nyo kami…
    Pinagforce resign po kami sa manpower agency na pinapasukan namin before… Hinold po nila last sahod namin,back pay at incentives… Sav nila after 3mos daw nila bago irelease un.
    Nakalipas ang 3mos hangang nag 7mos saka lang nila nabigay sa amin ang cheque aug. 2016 un… Pero posted check po ang binigay nila sa amin maiencash xa ng mar.2017..
    Dumating ang mar. Di pa din nmin naencash ung cheque kasi talbog daw tinatakan ng bangko closed account na daw po… 6kaming tumalbog ang cheque sa pagkakaalam ko di ko lang sure qng meron pang iba..
    Anu po kaya ang dapat qng gawen?
    At qng sakaling ilalaban po namin anv kasong ito nasa magkano po kaya ang magagastos namin

    Reply
  7. boomboomdos

    Good Day,

    Need Legal Advice;

    I with 4 others put up a small Business under a “Corporation”. Unfortunately our Business went bankrupt. However we incurred “Business Loans”, but I used my personal checks to pay for the loans as we did not have a check account under the name of our Business. Now our business closed before we finished paying the loans approximate not more than 4k left to pay. However I just found out that I have a hit with the NBI because of a BP22 case, and upon going to the MTC, I found out that I have a warrant of arrest and that I need to pay a cash bail of P2,500 to lift the warrant.

    My question is how liable am I to pay the loan since this is a Corporate Business Loan though I used a personal check for the payment?

    Thanks and have a great day.

    Reply
  8. tariritz

    need advise: i have unpaid bank loan with issued PDC year 2005. so problems happened: na demolished house namin, i lost job and mom died. year 2006 we tranferred residency and just got to manila again 2010. all my loan records wer lost and coz of so many trials i even forgotten the responsibility. for more than 10 years i never received notices from the said bank but today upon applying for NBI clearance i got a HIT. posible kayang yung loan ko ang reason? if yes, what will i do? nakakuha naman ako nuon ng clearance year 2010 in which 5 years after being loan delinquent. pwd bang makapag file pa ng case ang bank 5 yrs aftr? badly needed advise

    Reply
  9. Chandler

    Hello sir,
    Pwede po magtanong kung anong maaring gawin kasi po si mama may warrant of arrest na galing sa korte pero hindi pa po ibinababa sa lugar namin na inissue ng lending company na inutangan nya. Hindi po kasi masagot ni mama ang mga demand letter dati due to financial problem. Utang po ni mama e 100K na at ang nais nilang ibayad ni mama eh 50K kalahati po nun. Eh wala po talagang maibayad, pero naggagawa naman po ng paraan. Ayoko po kasi makulong mama ko gusto ko din po malaman karapatan nya. Thank you sir!

    Reply
  10. Richard

    Hi poh may utang po ako na 80k last 2009 ngfile sila ng case sa akin..now may pending warrant of arrest ako..gusto kong umuwi galing ng ibang bansa.take note yung utang ko unti unting nababayaran na..upon arriving poh ba sa airport huhulihin nila ako..may hdo poh ba ako..pls email me

    Reply
  11. Joy

    good eve po. i just want to check po if dapat po ba na nagnonotify si bank sa client niya if may problem ang acount nila. nangyari po kasi samin ito ngayon last 2016 nagopen po kami ng account for post dated check. nagkarron po kami ng bouncing check last september 2016 pero wala po advice si bangko na may kailangan kami isettle sa kanila. So expecting po na wala kami problem sa kanila. Nagpatuloy po ang monthly deposit namin sa kanila until 2018. nagulat nalang po kami na close account na without prior notice or text message man lamang.

    so nagpunta po ako sa bangko to check kung ano po nangyari sa account namin. So, ayun po ang explanation po ng bangko ay nagkaroon sila ng charges sa account namin which is 300 pesos per month na nagstart pa po last march 2017 at kagaya po ng una wala po ulit consent samin na until ngayon pong araw na ito nalaman ko po na ubos na po yung maintaining balance at ikinlose na yung account. Ganyan po ba talaga ang process ni bank na basta basta nalang sila magbabawas ng pera ng client nila without consent? at icoclose yung functional na account without consent which is monthly naman po ako nasa bank and pwede naman nila iinform kami na may problema na pala ang account. ngayon po kahit piso wala na po natira sa pera na sana ay iniipon namin dahil lagi po sobra ang idinedeposit ko kada month.

    Reply
  12. Ann

    Good day, Nah issue PO ako nang check SA Loan ko SA bank,nakahulog nman po ako, but nawalan ako trabaho kalaunan so nagbounce na mga check ko that’s was 7 years ago. SA ngayun the collecting agencies haunting me. SA 7 years Wala na along klarong trabaho. Tanong ko PO makukulung pi ba ako?

    Reply
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  14. Troubled

    Hello po. Nagtayo po kmi ng business. Yun pong isang supplier namin ay nagbigay sa amin ng terms. Kaso po dahil nagsisimula pa lang at nagkamali ng diskarte ay nakapagpautang din po kami kaya dpo namin nabayaran yung supplier namin. In return po nnghingi na lng xa ng cheke sa amin.kaso po d namin talaga makaya pang hulugan dahil unti unti po humihina buss. Lagi po nakikipag usap kami, and nakikiusap din po kmi na bka pwdng hulog hulugan na lang.kaso po ayaw po nya pumayag at gusto po ay ibigay nang gulpi yung utang namin. Paano po pwd namin gawin? D naman po kami ttakbo at willing naman kami magbayad kaya lang po ay hulugan? Please po, help po. Maraming salamat po.

    Reply

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