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 still be occasions when you will submit a check 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
We recently received a check from you in payment for [item /acc no /invoice no]. Unfortunately your 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.
We would like to inform you that a received check amounting to (currency and amount) from you on (date) has been rejected by your own bank. If we cannot receive the right agreed payable amount within (state days) after you receive this dishonored check notice, we have no other options but to file legal action to recovery our fund.
Sample Letter # 2
DISHONORED CHECK NOTICE
Your submitted check from us with an amount of $_________, dated _______, 20_____, has an issue on your bank. They dishonored it upon submission and unless you settle good fund that we need until ___________ upon receipt of this important notice, we have no other choice but to file a lawsuit against you as stated on the contract.
To avoid such inconvenience, we are requesting you to contact us as soon as possible.
(Name of Manager/Representative)
Sample Letter # 3
NOTICE OF DISHONORED CHECK
A check we received with and amount of (amount) on (date) has some unwanted issue. Your bank dishonored it and if we did not receive the exact collectable amount within (state deadline) after receiving this notice, we may immediately consider filing a legal case on this matter.
Again, please contact us and talk things over.