What you need to know about
Bad Check Notice
Use this bad check notice to officially notify someone that they have made a payment with a check that was denied for insufficient funds.
- Notifying someone that they have paid you with a check that was not honored by their bank
- Establishing evidence of non-payment in case of a dispute.
If you accept personal checks, you are more than likely going to be faced with a situation where payment on a check is refused by the bank. This is usually due to insufficient funds in the account upon which the check was drawn, and is more often than not due to simple accounting error, but regardless of the cause you are still owed your money. Use this bad check notice to let the writer of a personal check know that the payment did not go through and you are still owed money.
Sending someone a bad check notice gives them the opportunity to cure any mistake or defect that led to the bank refusing payment on their check. However, it can also initiate negotiations in the event that the check was intentionally cancelled to withhold payment. Bad checks are not always mistakes – sometimes, they are the initiation of a dispute or an attempt to defraud. If you have accepted a check that was subsequently denied by the check writer’s bank, use this interactive form to help make sure your rights are properly preserved.
Preview of Bad Check Notice
You are hereby notified that a check, draft, order of payment, debit card order, or electronic funds transfer numbered _______ (copy attached) in the face amount of $__________ issued by you on __________, 20___, drawn upon _______ Bank, and payable to ____________, has been dishonored. Pursuant to ________ law, you have 30 days from receipt of this notice to tender payment in cash of the full amount of the dishonored payment instrument, plus a service charge of $______. Accordingly, the total amount due is $__________. Unless this amount is paid in full within the 30-day period, the holder of the dishonored payment instrument may file a civil action against you. If legal action is initiated against you, you may also be held liable for attorneys’ fees, court costs, late fees and interest.
BAD CHECK NOTICE Checklist
Make It Legal™
Find out next steps for your document:
___Review Carefully. Look over the document carefully to ensure it matches your intentions.
___Sign the Letter. This letter needs to be signed by the Creditor. Electronic signatures are acceptable.
___Investigate State Rules and Regulations. Before mailing the letter, you should investigate all appropriate state regulation regarding collection, as well as the federal Fair Debt Collection Practices Act, in order to determine whether or not the letter complies with the provision of those laws.
___Distribute Copies. Fully executed copies of the letter should be provided to both parties.
Disclaimer: It is strongly advised to have your credit/finance documents reviewed or advised on by an attorney to insure compliance with law. To speak with a lawyer about this contract or any other legal need, please visit LawTrades.com.