There comes a time in any business when you unknowingly receive a bad check from a customer. Whether the bad check the written intentionally or by accident, the process of recovering the funds can be a serious hassle. It takes a good deal of time and energy to collect on a bad check, and it’s important to know your options before you get started. Writing an NSF check letter is generally the first step taken by most individuals.
An NSF check letter is an attempt to contact the check writer directly and let them know their account did not have sufficient funds to cash the check and to set up an alternative method of payment. In most cases if the check writer was unaware of their account balance, an NSF check letter can be an effective way of getting them to pay up for their book keeping error.
The basic format of an NSF check letter is as follows:
Dear _ ,
We are writing to inform you that your check made payable to [business name] on [insert date] in the amount of $[insert amount] has been returned by the bank due to insufficient funds.
Please make immediate arrangements to replace this check with cash or a money order in the amount of $[insert amount of check + bank fee] to cover your original check amount and the $[insert back fee] charged by the bank.
If an alternative form of payment is not received by [insert date] further action will be taken to collect this debt. Please forward your payment to the address below.
For further information or additional assistance regarding this matter, please contact [insert name] at [insert contact information]
In many cases, the above NSF check letter may not be an effective means of collecting the money owed. That’s where the professional services offered by Global Check Recovery come in handy. Global check recovery can digitally re-present the NSF check to the bank on your behalf, provided some basic criteria are met. Namely that the check amount is less than $2500 and that it has not been represented to the bank already.
Electronic representment uses a sophisticated method for greater recovery and can be significantly more successful than pursuing the collection on your own. To learn more about Global Check Recovery’s free electronic check recovery services contact us today!