Collecting Bad Checks

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Question:

We are trying to determine if there is any best practices for fraud loss collections. Should we file a police report to try and receive restitution on a fraud loss ($646) versus use a collection agency? This is a fraud loss related to bad checks deposited into a checking account that were charged back.

Answer:

Filing a police report does not get you your money back. You would have to sue the party and obtain a judgement and then collect on that judgement. It usually comes down to a cost benefit analysis.