What Do You Do About a Returned Check?
A returned check does not always mean the check has bounced. A vendor may return a check if you have already made a payment, or if payment is too late and they will not accept payment on your account unless you contact them. But if your check is returned for insufficient funds, there are some things you should do immediately.
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Contact the Vendor
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If the bounced check you wrote is an oversight, then contact the vendor and work out new payment terms. They may resubmit the check which would give you a chance to put new funds in your account to cover the check.
Look for Fees
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As soon as you learn of a bounced check, it is important to take action to prevent further fees. Be certain to deposit sufficient funds in your checking account to cover the amount of the check, and all bounced check fees to prevent the check from bouncing when it is resubmitted.
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Appeal Fees
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Some banks will waive bounced check fees if you have made good on the check and do not have a history of bouncing checks. After investigating the bounced check it may be found that the bank incorrectly applied a deposit of yours to the account of someone else, or some other banking error, that would cause them to cover the check and waive any fees.
Considerations
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According to Legal Zoom there are limits set by each state as to how much can be charged for a bounced check. If you receive a bounced check fee that seems abnormally high, such as a fee more than $30, then contact your state attorney general or consumer hotline to see what the maximum allowed fee is for your state and what laws apply.
Warning
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Some states require legal action be taken if you write more than a pre-determined amount of bounced checks in one month. Understand the laws of your state and be very careful to avoid prosecution for bounced checks.
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- Photo Credit Image by Flickr.com, courtesy of Orin Zebest
