Someone writes you a bad check?

Question

Someone writes you a bad check and it does not clear their bank account. So they deduct the money from your your bank account. What does the bank do with the bad check.

Answer 1

With a paper check, the bank on which it is drawn writes the reason that they refuse to honor it (Not Sufficient Funds, Account Closed, Improper Endorsement) on the face of the check and returns it to your bank who deducts the money from your account and send the check to you, to take up with the person who wrote the check (except for the Improper Endorsement...that's your fault)

With electronic clearing, the same path is followed except that they us digitized images of check and messages. If your bank has deducted from your account, that means they have the information from the other bank already. Exactly what they mail to you and when they send it varies from bank to bank. You have to ask them.

Answer 2

The bank should send you an image of the bad check so you can attempt to either resubmit it or contact the individual to collect yourself. It can sometimes take a week or two for you to get it in the mail but if you go to your bank they should be able to give you a print out right then and there. You will not get the actual check back becaue of electronic check truncation, but the image should be stamped with the words basically "legal copy." My best suggestion is to take the check to the bank it is drawn on to see if they have funds in the bank, if they do ask them for the cash right then. This way you don't get another returned item fee to your account...then you need to collect the returned item fee from the person who wrote you the check.

Answer 3

The bank sends the bad check back to the bank upon which it was issued, that bank will charge the writer of the check for handling a NSF check, and you end up trying to collect the amount for which the check was written.

Answer 4

not sure, call the bank.