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ecords accurate. Fill out the check register before you write the checkso you won’t forget to do it later.Bad Checks A bad check is a check drawn on an account in whichyou have insufficient funds. Writing a check on an account with insufficientfunds is larceny or attempted larceny, unless it is accidental.Example 1. The Lotus Loan Company received Renee Cronyn’scheck for $125, due on an installment note. After it was deposited,the check was returned to Lotus with the notation “InsufficientFunds.” The financial institution sent Renee a certified letter notifyingher of the bad check. If she fails to make the check good,a criminal complaint can be filed against her.Bad-check laws are used as an effective means of debt collection.When notified that they are subject to prosecution, most people makeevery effort to pay the creditor the amount of the check. Banks andstores generally charge a penalty fee for bad checks.Flee FeesChecking accounts incur fees, and these days banks may charge a fee foralmost any service related to your account. Almost all banks charge for suchthings as printing checks, stopping payment, and bounced checks, but manybanks have gone even further in recent years. Many banks now charge afee for using an ATM, using a teller, keeping a low balance, and receivingcancelled checks. These fees are legal and within the bounds of regulatorypractice.If you want to avoid paying excessive fees for having a checking account,you might want to shop around for a bank that charges less for its services.Start by examining your banking habits and needs. In doing so, you mightwant to answer the following questions. Do you often use the ATM? Do youhave trouble maintaining a minimum balance? Do you write many checkseach month? Do you like to receive your cancelled checks with your monthlystatement? Do you transact business at the bank often?Make a List Make a list of your banking habits as suggested above. Ask yourbank for a list of fees related to its banking services.526 Unit 5: Using Your Purchasing Power