How to Write a Letter to Client Regarding a Bad Check: Example and Writing Tips

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Bad Check Received? Here's What to Do

If you've received a bad check, it can be frustrating and stressful, but there are steps you can take to resolve the situation and get your money.

First, it's important to contact the person or business that issued the check as soon as possible. Send them a letter or email explaining the situation and requesting that they make good on the check. It's also a good idea to include a copy of the check and any supporting documentation, such as a deposit slip or invoice.

If the issuer doesn’t respond or is unable to pay, you may need to take legal action. Consult an attorney or your local small claims court to learn about your options and the process for filing a lawsuit.

In the meantime, you can also take steps to protect yourself from future bad checks or check fraud. For example, you can ask for a cashier's check or money order instead of a personal check, or require that new customers pay a deposit or provide a credit card number. You can also use check verification services to check the validity of a check before you accept it.

Need to Write an Effective Bad Check Notice? A Step-by-Step Guide

Crafting a bad check notice that effectively communicates to a client can be a tricky task. It’s important to convey the gravity of the situation, yet maintain a professional and polite demeanour.

  1. To start, it’s crucial to notify the client that their check has been rejected or returned as "non-sufficient funds" (NSF). This can be phrased in many ways, such as "your check has been declined" or "the check you submitted has been returned unpaid." Provide specific information about the check in question, such as the check number and the date it was issued.
  2. It’s also essential to include information about the consequences of a dishonoured check, such as any additional fees or penalties that may be incurred. This can be phrased in a variety of ways, such as "extra charges may apply" or "failure to rectify this issue may result in additional fees."
  3. Finally, it’s important to give clear instructions for how the client can rectify the situation. This can include providing a specific date by which the funds must be paid, or contact information for the person or department responsible for handling the issue.

You May Also be Interested in Our Sample Letter for Informing a Supplier of a Mistake on the Billing Invoice Document

Letter / Email Template to Advise Customer of a Returned Check (Easy to Adapt)

Subject : Bounced check due to insufficient funds in the account

Dear (Mr/Mrs. Etc.),

We are sorry to inform you that (name of bank) have returned your last check payment to us.

We have been advised that the reason being that there are insufficient funds in your account to cover the payment amount of ($550.00), check number (0001937).

In order for your account to remain open with us, we kindly request that you find an alternate method of payment within the next 72 hours.

Due to the circumstances, we are only able to accept payment via a money order, banker’s check, certified check, or should you prefer to pay over the phone via credit card, please call our dedicated late payments telephone line on (309-39580320) where someone will be able to assist you further.

We understand that there may have been a bank error in which case, we sincerely apologize for any inconvenience caused and would appreciate if you would please call us to explain and proceed with payment immediately.

We wish to endeavour to keep your account within good credit ratings now and for the future.

Kind regards


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