The first step in collecting funds from a bounced check is to contact the person who wrote it. You can use the following templates — you may only need the first — to notify the bounced-check writer and demand payment.
Send each letter via certified mail with “return receipt requested,” and make sure to keep a copy for your records. Sending the notices via certified mail gives you legal grounds to sue in small claims court if you are not able to clear up the issue informally.
If you must file a lawsuit, please note that each state prescribes a maximum number of days that a bounced-check writer must be allowed to make good on the check after sending that individual a written notice. You should consult your state’s statutes for the appropriate rule.
Letter 1: Initial Correspondence
This letter establishes a paper trail, providing a written account of the issue in a polite but assertive tone. You should avoid making any threats that would reduce your chances of recovering the money you’re owed.
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NOTICE OF DISHONORED CHECK [Your Street Address] [Your City, State and Zip Code]
[Date]
[Recipient’s Name] [Recipient’s Street Address] [Recipient’s City, State and Zip Code] RE: Notice of Dishonored Check Dear [Name of Bounced-Check Writer]: I am writing to inform you that check #[Check Number] dated [Date on Bounced Check], in the amount of $[Amount of Bounced Check] made payable to [Your Name/Payee’s Name] has been returned to me due to [insufficient funds, a closed account, etc.]. I realize that such mishaps can occur and am confident that you will rectify this matter immediately. Accordingly, I ask that you please mail (or deliver in person) a new payment in the original amount plus the bank’s returned-check fee of $[Returned Check Fee Amount] to the following address: [Your Mailing or Delivery Address] Please make your payment in cash, certified check, cashier’s check or money order only. It is imperative that you do so without delay. If funds are now available in your account and you would like me to redeposit the check, please let me know as soon as possible. You may contact me at [Your Phone Number]. If you have already sent replacement funds, please disregard this letter. Thank you for your prompt attention to this matter. Sincerely,
[Your Signature] [Your Printed Name] [Your Title, if applicable] |
Letter 2: Escalation
This is a formal demand for payment. It is written in a firmer tone that is appropriate if the first letter was not acknowledged by the recipient and/or you still have not received replacement funds.
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FINAL NOTICE OF DISHONORED CHECK [Your Street Address] [Your City, State and Zip Code]
[Date]
[Recipient’s Name] [Recipient’s Street Address] [Recipient’s City, State and Zip Code] RE: Final Notice of Dishonored Check Dear [Name of Bounced-Check Writer]: I am writing again regarding check #[Check Number], which, as you know, was returned to me by the bank due to [insufficient funds, a closed account, etc.]. [Choose one:
Unless I hear from you or receive a new payment within 14 days of the date of this letter, I will pursue appropriate legal action. I prefer to avoid such a remedy, as it is not the best solution for either of us. I hope to hear from you before [Date 14 Days from Date of This Letter]. Sincerely,
[Your Signature] [Your Printed Name] [Your Title, if applicable] |
