Received a check that bounced? Here’s what you can do

Whether you are a debt collection agency or a business owner, receiving a cheque that bounced or a bad cheque is common and inevitable. As a business that deals with giving products to people on credit or lending a loan, you have to be prepared for a situation in which a cheque given to you by the customer or client will bounce. Now, most people assume that the reason for a bad cheque is an insufficient fund or no money in the account of the person who wrote the cheque. There can be other reasons too and you should figure out the reason for cheque bouncing first.

It is damaging for both parties involved as both parties incur a fee for issuing and receiving a bad cheque.

Here are some ways to deal with a bad cheque.

If the cheque you have received is bad or has bounced, you need to act quickly and here are some things that you need to do:

Track the customer and make contact with him/her immediately

The chances of a person writing a bad cheque intentionally are less, so when the cheque bounces, the first thing you need to do is contact the person. The cheque will have all information like the customer’s name, address, and phone number, use that to call him/her up, and inform them about the cheque bouncing. Ask them to pay you immediately using some other option.

If the customer seems reluctant or doesn’t respond to your calls or emails, hire a debt recovery agency. They can track the customer down and convince them to pay the money that they owe to you. Visit our website for collection services.

Cheque the state laws

Depending on the state where you live, you should cheque with the state department what rights you have if the cheque given to you by a customer bounces. In most states, when a customer unintentionally writes a bad cheque to you, you have the right to collect three times the amount of the cheque and the original amount from the customer. If the court agrees to the charges that the customer wrote the cheque intentionally, the lender can also ask the customer to pay the attorney charges as well. Treble damage is the name of this law, which lets the lender collect a bigger amount then the cheque’s original amount. It is viable if the customer doesn’t pay the amount within 30 days of getting a written request to pay the amount of the cheque that bounced.

Visit the bank

Pay a visit to the bank that is listed on the cheque as letting them knows everything will help you avoid bad cheque fee. Also, talking to a bank might work in your favor because if the customer has disappeared the bank can help you with the money.

The bank will decide what to do. If it cannot help you, move on to the last option.

Seek help from a collector

The last thing you can do is higher a debt collection agency. They can advise you on what to do next and also track and convince the debtor to pay the amount. They work within the law and are discreet and successful too.

Don’t fret when you get a bad cheque, follow these tips and things will sort out soon enough.