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.
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company. If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406 Visit http://www.helpwithdebtuk.com Article Source:http://www.articlesbase.com/banking-articles/advice-on-a-bounced-cheque-1497790.html
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
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