Would you believe it if we said 42% of Millennials still write checks on certain occasions? Believe it or not, big data backs up this shocking fact. The reason why checks continue to persist is because it’s the easiest option aside from cash. There is one problem, though. Checks can bounce, and a bounced check carries significant consequences.
The best way to empower yourself and prevent a mistake is to learn what you can about bouncing checks. Read on to get informed and build your knowledge on the subject.
What’s a Bounced Check?
So, what exactly is a bounced check? When you go to the bank to cash a check, they’ll provide you with the funds right away. Despite that, the bank doesn’t receive the funds from the check right away.
It takes a few days for the check to get cleared.
By the time the funds are getting withdrawn from the check writer’s account, the funds might not be there. If that happens, the check ‘bounces’ because the bank can’t collect the funds.
If you cashed or wrote the check, then you’ll get a call from the bank.
What to Do If Your Check Bounces
Did you check bounce? Don’t panic!
Cashing a bad check is only a crime when you do it on purpose. It’s unlikely the bank will press charges if you explain the situation when the bank calls.
First, acknowledge the fees you’ll face. You could owe the bank up to $50. If you can’t pay this fine right away, give the bank assurances that you will ASAP. Next, call the person you wrote the check to and note your error.
How to Handle Cashing a Bad Check
Did you cash a check that bounced later? If so, then the bank likely called you and explained the situation. They also likely told you that you need to bring back the full amount of the money they gave you.
You’re liable for the full amount of that check. That’s why it’s important to understand not only the parts of a check but also how they work. If you can, then return the money to the bank. If not, then take the following steps:
- Contact the check writer
- Send a formal demand letter to the check writer
- Take the situation to court
- Pay the bank fees
In some situations, you can seek justice from the bad check writer. At other times, it’s a scam, and the nefarious scammers can’t get tracked down. Alert the FTC if you’re the victim of a cleared check scam.
Handle Your Checks Like a Pro in 2021
Cash money is an instant transaction, but checks do take a few days to officially clear. This time delay can lead to a bounced check, which always leaves someone at a loss. Not only is a bounced check frustrating, but it could also get considered a crime, too!
Don’t get caught falling short. Handle your checks like a pro in 2021! If you’re looking for more ways to stay on top of your finances, then we can help. Keep browsing through our blog or contact us with any specific questions.