Every business and organization that accepts some form of money receives them – you just can’t avoid them, and when you receive them they can be a complete headache. We’re talking, of course, about insufficient funds checks. Each and every day, businesses both large and small receive an insufficient funds check, and depending on their methods of rectifying the situation, the insufficient funds check can either be a minor issue or a long-lasting problem. If you are a new business owner, you may not be familiar with the definition of an insufficient funds check. Global Check Recovery, the nationally recognized check collection service, is here to help you through this process.
An insufficient funds check is something that isn’t very hard to understand. As the name implies, an insufficient funds check is a check written for an amount that the check writer does not have. This can happen for a few reasons, ranging from accidental to unlawful. The most common reason for an insufficient funds check is the person who wrote the check did not realize how much money he or she had in their bank account. A simple mistake like this can be easily rectified by alerting the check writer of the situation. In this case, the check writer need only ensure that there are sufficient funds in his or her bank account before issuing another check.
The other reasons are far more nefarious than a simple mistake – if the check writer wrote an insufficient funds check on purpose to get out of paying for services or products or if it becomes impossible to make contact with the check writer. These reasons often cause the most damage to your company if improperly handled. The first thing you should do if faced with an insufficient funds check is to send a certified letter to the check writer. Include a return receipt and a stern demand for payment. After sending the letter, check with the check writer’s financial institution to make sure if sufficient funds have been deposited. If, after taking all the necessary steps, you find yourself still without payment, you will need to consult a lawyer.
Before you run into a situation like this, contact Global Check Recovery. We can fix this unfortunate situation so you can get back to business!