Steps to Collect on a Bad Check
Here are the steps on how to collect on a bad check:
Steps to Follow
- Contact the check writer. First, try to resolve the issue informally. Explain that the check bounced and ask them to make payment another way, such as cash or credit card.
- Send a demand letter. If the check writer doesn’t respond, send a demand letter outlining the amount due, the date the check was written, and the date it bounced. State that you’ll take further action if it isn’t paid within a set period.
- File a police report. If the check writer still doesn’t pay, file a police report. This creates a record of the incident and may help if you decide to pursue legal action.
- File a civil lawsuit. If the police can’t help, you can file a civil lawsuit against the check writer to sue for the amount of the check plus any additional damages you’re entitled to.
- Place a lien on the check writer’s property. If legal action doesn’t recover the money, you may be able to place a lien on their property and collect once it sells.
Keep in mind that the exact steps to collect on a bad check can vary by location. Consult an attorney for advice specific to your situation.
Here are some tips to help you avoid bad checks:
Tips to Avoid Bad Checks
- Only accept checks from people you know and trust.
- Check the check writer’s ID.
- Look for the check writer’s bank routing number and account number.
- Call the check writer’s bank to verify that the check is good.
- Do not cash a check that is made out for more than the amount owed.
- Keep a copy of all checks you receive.
An experienced debt collection agency like New World Collections will handle all of these steps for you. In most cases, it’s best to work with a reputable collection agency when trying to recover a bad check.
At New World Collections we are experts in all aspects of bad debt recovery. We have the answers! Contact Us
