Checks are still very valuable today, allowing actions such as endorsing a check from a company to deposit, make or receive payments, etc. One of the problems that can cause a lot of stress in relation to checks is the fact of receiving a bad one. If you have received one of these and do not know what to do, worry no more, today we will answer all your concerns under the topic What to do if I receive or get paid with a bad check? – Here is the answer.
What is it and what does it mean to receive a bad check?
One of the functions of commercial banks is the dissemination of checks, this being one of the specific objectives and functions of financial institutions that greatly benefit customers.
Speaking specifically of bad checks, it has been established that these are checks that are rejected by the bank of the person who has written the check, due to lack or lack of funds required in the bank account.
When this happens, it is probably because the issuer’s account is closed or does not have sufficient funds to cover the amount stated in the check. Similarly, the depositor of the check will not be able to receive payment in any way and most likely they will charge you a fee.
Bad check as a crime
There are many countries that have laws that establish the delivery of a bad check as a minor offence, that in most cases the person must pay a fine or other type of sanction for it.
On the other hand, in other countries, although there are no established laws that govern how to operate when there are bad checks, the issuer may be accused of committing a crime of Aggravated scam and counterfeiting of commercial document according to the region where this happens.
What to do if I receive or get paid with a bad check?
First of all, you should know that when a bad check is rejected, immediately the depositor’s bank will receive a notification “NSF” due to lack of funds and immediately the deposit is canceled.
It is in this moment that then the depositor must proceed to contact the person who issued the check, to make the respective replacement payment and required bank charges.
In the event that the check issuer’s bank account is still open, receiving the aforementioned notification should not surprise you, as the check recipient also received a notification when the bad check bounced.
To avoid a problem with the payment and that this situation is repeated, it is recommended that the refund payment for the check be made in cash, money order or any type of guaranteed funds. When notifying the check issuer of the incident, try to find out why the check was declined, as in most cases it is unintentional.
You should also closely follow up on all requests made in writing. through registration with return receipt or certified mail. On the other hand, if goods have been purchased, you must request the return of the item immediately.
Of course, it is important that throughout the process of requesting payment, you do it with total courtesy, so that you avoid conflicts and perception problems, as well as the accusation of crimes such as coercion or threats.
What to do if you have problems with the check issuer
If you have trouble contacting the check issuer or the check issuer does not refund in the agreed time, you can take other steps to recover the money from the bad check. For example, you can contact your bank and ask about services related to the payment recovery bad checks, granted by other banking entities.
You can also choose to use the laws governing the recovery of money from bad checks in your country, so you can search local and state websites to learn about your rights and measures to take with respect to the cashing of bad checks you receive.