It is an offence to present a check (cheque) for payment when there are insufficent funds in the bank account to cover the amount to be paid.
There will be occasions when you will submit a check froma customer to your bank in good faith, only to have it dishonoured / declined. Unfortunately the bank usually charges you, the innocent victim, a fee for the bank’s time in attempting to process it! It is therefore not unreasonable to ask the payee, for not only the amount owed in full, but also the costs you incurred when presenting it to your bank and having it declined.
This letter can also be adapted to send to a friend or someone you know personally.
Letter to a customer regarding a declined /dishonoured check (cheque) – sample 1
[Business name]
[Date]
Dear [Name]
We recently received a check from you in payment for [item /acc no /invoice no]. Unfortunately your bank, [name of bank], has declined the payment as ‘having insufficent funds’ in your account.
Would you please make immediate payment on this outstanding amount to include, in addition, the costs we incurred from the bank when they declined the payment. This came to [amount] which brings the total you owe to [amount] and we attach an updated invoice to reflect the new total.
We expect to receive payment by / within [timescale – 14 days / by the end of the month /specific date].
Please do not disregard this notice.
Yours Sincerely
[Your name]
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