Collecting on Bad Checks: What You Need To Know

What do you do when you realize you have a NSF Check? Most business owners haven’t dealt with the sting of receiving a bad check, so they usually don’t know where to start. So what do you need to know about collecting on bad checks? These are a few things to do when starting to collect on a bad check.

  • Talk to the Check Writer

This step should really only be taken under two conditions; you either know the writer personally and it’s a mistake or by letter. If you know the person, reach out and say that you think there’s been a mistake and that the check has bounced. If you don’t know them personally, you can reach out with a letter and address the bounced check. If you have a lawyer, discuss with them about how they would go about collecting on bad checks. They may have recommendations that are business specific, or they may even contact the check writer for you.

  • Confirm the Bad Checks Aren’t Hurting Your Bank Account

If you’ve been pulling from your account without the money from the check, you may be overdrawing your account. Keep a close eye on the balance of your accounts and make adjustments accordingly. You may even want to talk to your bank if the check really affects your bottom line and while you are collecting on bad checks. A general rule of thumb is to consistently check on your account balance before, during, and after a check clears.

  • Hire a Service

For small businesses, this is typically the best way to start collecting on bad checks. Most small business based check collection services have the resources to help. With minimal or no fees, resources to prevent NSF checks, and the expertise to match, these services can really help businesses that need immediate assistance. Before needing one, it’s good to at least look into or sign up for a service so you can use them as soon as a NSF check appears.

Collecting on bad checks isn’t as scary as long as you know what to do. By following these tips and contacting a collection service when it happens, the bounced check can have little to no impact on your business. Global Check Recovery is here to help if and when a bounced check happens. Visit their FAQ today or give them a call to learn more!


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