A bounced check may be an honest error from the person making payments, or they could have sent the check before depositing the money into their account. It is definitely an inconvenience especially if you have to keep in touch with the check writer to figure out the problem. Some checks bounce due to the negligence of the check writer, while others are intentional. Therefore, you first have to identify the intentions of the check writer. If it reads malice, then you can escalate the recovery measures. Here are some of the ways you can use to recover a bounced check.
Call The Check Writer
Once your bank informs you that the check has bounced, it is best to inform the check writer of what has occurred. They may accept that it was a mishap on their side. If so, you can give them time to rectify the mistake and write a valid check. You can also request them to pay for the bouncing fees the bank indicated. Furthermore, you can call the bank to find out if it was an error on their side. If it is a bank error, they will rectify it.
Noteworthy, you should not try banking the check again without making these essential calls to find out the problem since you will be slapped with another bouncing check fee. If the check writer does not comply or is unreachable, you can then look for other advanced methods to recover the bounced check.
Call Your Lawyer To Determine The Steps Of Recovery
Several laws can guide you on how to obtain a bounced check. The laws are usually pretty much straight forward. However, you can opt for an attorney for legal advice on what steps to take after the check has bounced and the check writer is unreachable. An advocate will help you initiate the process without missing out on any vital steps.
You need to follow through with what the law says concerning such invalid checks. Some state laws, such as California, require one to send a demand letter to the check writer before proceeding to take any legal action. Also, some states’ bounced check laws outline the amount you can recover from a bounced check if you win in court. In most states, it is triple the amount of the original check amount. Therefore during the recovery process, you also need to be aware of such laws.
Call The District Attorney
Some states have a bounced check restitution program. In such states, the District Attorney’s Office contacts the check writer and asks for payment from them. A demand letter with a government letterhead can make one cough up the money in no time.
Use A Collection Agency
Debt collectors can go to all ends to ensure the money owed to their client is paid up. They use all manners of threats that can make one pay up just to have some peace of mind. Therefore, if you are dealing with a notorious check writer who is unwilling to amend the bounced check, you can opt for a debt collection agency. Some of the strategies used by debt collection agencies include;
- Make frequent phone calls to the check writer’s home or office telephone
- Write late payment notice emails and letters to the check writer
- Appear at the debtor’s house to ask for the money.
If you are a busy person, it can be hard to keep up with a debtor; making regular calls to follow up on money can be tiresome, especially if you have a tight schedule. So you can look for a collection agency to do it for you; and in due time, you will have your payment. Additionally, ensure the debt collectors do not abuse the rights of the check writer in the process since they may sue you or the collection agency.
Check Recovery Service
Check recovery agencies keep track of the account, and as soon as a deposit is made in the account, they will revert the check to you. Such agencies are helpful, but you also need to caution them about breaching the check writer’s privacy. Most of these agencies use specific algorithms to determine the best re-presentment day and time. A good check recovery agency should be conversant with consumer behaviors and the various bank procedures. Knowing such allows them to know the right electronic re-presentment to maximize their collection chances. Once the agency collects the funds successfully, they will deposit the funds to your account.
Being on the receiving end of a bouncing check can be a punch on your face, and if you are a business owner, it can drag you back. A check recovery process can cause headaches and lots of lost time trying to get in touch with an uncooperative check writer. However, you can get help with this daunting process from debt collectors, check recovery agencies and advocates. These parties can help you recover your check without breaking a sweat.