When you start your own business or organization, you will probably get bombarded with a deluge of new information about a wide variety of business-related topics, including finances. One of the most important, yet often overlooked, aspects of the financial side of new businesses is how to handle an NSF check. Many people just starting out don’t know what an NSF check is, let alone what to do when one is received. At Global Check Recovery, we understand that starting your own business is a challenge in itself, and that unfamiliar financial situations can become easily misunderstood issues. In order to understand how to handle an NSF check situation, you must first ask the question, “What is an NSF check?”
It isn’t hard to understand exactly what is an NSF check. The “NSF” in NSF check stands for “non-sufficient funds.” A check is labeled an NSF check when the check is written for money than is in the checking account. This can happen for a number of reasons. The first, and most innocuous, reason is the check writer simply failed to check his or her account balance before writing the check. In this case, the problem can be easily remedied with a phone call. All the check writer would have to do is ensure there is enough money in the checking account before issuing another check.
The second reason, and the one that can cause the most problems, is if the person intentionally wrote an NSF check or if it becomes impossible to reach the check writer. In this case, there are certain steps you need to take to rectify the situation. First, the best thing to do is send the check writer a certified letter. This letter should include a return receipt and a demand for payment. After a few days, check with the bank to see if the funds have been deposited. If you have tried all the steps mentioned above and you still cannot recover the funds, the next step is seeking legal counsel.
If you have more questions like “What is an NSF check?” feel free to contact the experts at Global Check Recovery!