Advice on a bounced cheque
If you have a cheque in your hand in respect of good s that you have supplied or services that you have rendered, and it has been returned to your for any reason by your bank, you will want to know your rights and remedies for getting payment.
In simple terms a cheque written by the debtor is a cast iron guarantee of payment. In law there are generally only two defences to a bounced or stopped cheque, (a) total failure of consideration, which in essence means that you didn’t provide anything to them as promised for the cheque, and (b) that the cheque was obtained fraudulently.
If you have a cheque that has been stopped or has been referred to drawer, for lack of funds, it is easy to take steps to obtain a judgment against the party dishonouring the cheque. There are guides online which show you how to take proceedings. Alternatively call our free helpline.
If you didn’t want to issue proceedings it is possible , if the cheque is over £750, to serve a statutory demand as a pre-courser to the issue of a bankruptcy or winding up proceedings. These can be expensive and care should be taken before launching these actions and paying hefty Official Receiver’s deposits.
Please bear in mind that a bounced cheque can be an indication of actual insolvency of your debtor. They may have reached a limit on their account, and you may not be the only account now in default.
A bounced cheque can often lead problems with your own account and so remember to reconcile your finances as well to make sure that you are not in a situation where your cheques may be returned.
If you are presented with a cheque, you can ensure that it will be honoured by the bank. Make sure that the cheque is within the guarantee limit. Ensure that it is signed and dated. Check the expiry of the cheque guarantee card. Write, the card details including the number and expiry date on the back of the cheque. If these are complied with, then you should have no problems.
Questions and Answers
Article Tags:
cheque
,bounced cheque
,overdraft
,guarantee of payment
,getting payment
,stopped cheque
,dishonoured cheque
,referred to drawer
,statutory demand
The article consists of the tips for the bankers to have effective followup over the loans granted to their borrowers
Interview with the intending borrower plays a great role in providing a lot of information to the credit manager while he is in the process of extending finance to a new borrower. In this article certain tips are given as to how questions can be posed during the course of credit interview
India: Banking covers the industry overview in terms of inflation, repurchase agreements, new loans, policy banks and foreign banks. It also covers the market trends and outlook including reserve requirement ratio, Basel III, financial integrated circuit cards, non-performing loan and internationalisation of RMB, plus the operational highlights and SWOT analysis of the leading players: State Bank of India, Punjab National Bank, HDFC Bank and ICICI Bank.
Personal banking is the term which is actually devised on the lines of retail banking. The essence of such type of banking facility is that the products and services are custom designed to meet individual banking and subsidiary needs.
Fears about how the problems in the Eurozone will have an effect on the UK, and how being part of the eurozone can be beneficial to some countries and negative to others. The eurozone has a strong influence on natural economic principles and these influences spoil the natural economic balances. Consequently a country's financial problems can continue to spiral whilst other countries can manipulate these factors to their benefit.
Sean Quinn had his bankruptcy in Northern Ireland annulled last week by a Belfast Appeal Court. I analyse the judgment and the implications for those seeking to go bankrupt now in the North of Ireland
If someone from another EU country wants to go bankrupt in England, they can do so but they need to establish their COMI or centre of main interest here. The Judge hearing a bankruptcy annulment application against Sean Quinn, Irelands former richest man has set out some new rules on how this must be done. Here I explain them.
If you are Irish and you have settled here in the UK for the purposes of going bankrupt you may wish to understand a little more about the process which takes place after the bankruptcy order has been made. Here I set out how the Official Receiver treats his cases
A New Year has dawned and for many it will herald a chance for a new start. In Ireland I know that many families will be facing up to another year of debt and depreciation and for lots they will be seeking to move across to the UK to set up a new life. Here I set out the process.
Pay day loans are now said to have been used by 1 miilion people in the UK. If that is true then in my opinion we have a huge debt time bomb ready to explode. This high interest lending leads in my opinion to a cycle of dependancy that benefits only the pay day lender.
Discuss this Article
