There are many times and situations in which you or someone you wrote a check to, finds out that the bank has bounced back or dishonored the check. When a check is bounced by the bank authorities, this explains that the check writer and account holder don’t have enough funds in the account so that the check can be cashed. When this happens, you need to properly inform the check writer about this misfortune and give him a chance to either explain his situation or correct his mistake. This is very important because in case you don’t inform the check writer, the matter in court can take weeks and months before any solution. In order to properly inform the check writer about a bad check, you need to write him a formal bad check notice. There are many things included in this notice but it is not important if you want to write this notice by yourself. You just need to explain the particulars of the bad check in the letter along with the time frame or duration you want to give to the check writer in order to receive the payment some other way.
Brief Description of the Bad Check Notice:
Sometimes when you cash a check the bank informs you that the account holder and the writer of the check don’t have enough credit in the account and thus the check is bounced. This is a very difficult situation because most of the time, suppliers and clients rely on the payments of these checks and even a little hiccup in the process can cause a big damage. If you end up with a bad check, you can hire an attorney and file a case against the account holder but keep in mind that this can take some time. Another thing to do is to inform the account holder and find out if he did that on purpose or if it was an honest mistake which he can resolve without involving any other party. This is where you need to write a formal notice to the account holder and inform him about a bad check that he sent you and ask him to make the payment some other way i.e. cash or account-to-account transaction.
Key Elements to Include in the Bad Check Notice:
- Name of the person who is sending the notice with complete address
- Name of the person who signed the check with the address
- Names of companies of both parties
- Date when the check was signed by the writer
- Date when the check was received by the creditor
- Date when the check was bounced by the bank
- Name of the bank that dishonored the check
- The amount that the check contains
- Duration or time limit for the debtor to send the payment otherwise
- Statement of final notice to the check writer
- Informing the check writer about what will happen next if he doesn’t pay the creditor in time
- Signature of the creditor or sender of the notice
Here is a preview of a Free Sample Bad Check Notice Sample created as a fillable PDF Form,
Here is the download link for this Bad Check Notice Sample,
