Unpaid cheque

busiscoming2

My OH is self employed, today we had a customers cheque returned unpaid from our bank. This has never happened before and just wondered if anyone could tell me if there is a protocol to follow, regarding contacting the customer?

Andystriker

If it was me,

I would contact the customer either by phone or in person and give them a chance to put it right. I would ask for cash.

I would not give them the cheque back as this is your evidence.

I would give them 24 hours to pay you in cash.

If they refused I would remind them that they are breaking the Law issuing a cheque knowing that it will not be paid, and I will be taking the appropriate steps.

Then it is up to you if you want to go and see a Solicitor.

Andy

zzzLazyDaisy

The previous poster is right, you should contact the customer and give them the chance to put this right and pay you the money, preferably in cash.

But if you cannot resolve this, you can issue proceedings in the small claims court provided the amount owed is under £5000. You do not need a solicitor to do this. It is unlawful to bounce a cheque, and the claim would be for a dishonored cheque (and not, for example, debt or breach of contract).

Before you start court action you would need to send them a formal letter before action giving them one last chance to pay before you start proceedings.

If you can't sort it out amicably, come back here and we'll help you with the letter befoe action, and the court papers.

missile

I would suggest you try to be business like and avoid threatening legal action, this should be your last resort.

You do not say how much? If customer does not respond promptly to a polite phone call you might want to employ a debt collector rather than waste time when hubby could be out earning.

I had a woman who sent me an unsigned cheque. Fortunately I noticed before I dispatched the goods. I would like to think it was a genuine mistake.
I was sent me a rubber cheque, then sent me another and it bounced too. By this time it was rather difficult to keep my temper, but I did and he was most appologetic and gave me cash.

ERICS_MUM

Did the bank say "Refer to Drawer" or "Refer to Drawer - please re-present" ? If the latter, it's an indication that there might be some money on the account if you try paying it in again.

Good luck

iblametheparents

Your bank may represent the cheque, which bank is it?

busiscoming2

It is a Barclays cheque. Have had a phone call from the customer apologising profusely, saying it was a cheque drawn from a new account they had not yet put any money into. He picked up the wrong chequebook, which I believe as the cheque is 001. He is sending another cheque today, so shall wait and see.
Thanks for all your help.

iblametheparents

busiscoming2 wrote: »

It is a Barclays cheque. Have had a phone call from the customer apologising profusely, saying it was a cheque drawn from a new account they had not yet put any money into. He picked up the wrong chequebook, which I believe as the cheque is 001. He is sending another cheque today, so shall wait and see.
Thanks for all your help.

Sorry, I meant who is your bank? Have they indicated they will represent the cheque? Most banks do if the reason the first cheque bounced is due to lack of funds.

rb10

iblametheparents wrote: »

Sorry, I meant who is your bank? Have they indicated they will represent the cheque? Most banks do if the reason the first cheque bounced is due to lack of funds.

If they have returned the cheque to the customer then the bank is clearly not going to re-present it.

zppp

rb10 wrote: »

If they have returned the cheque to the customer then the bank is clearly not going to re-present it.

Where has the OP stated so far that they have recieved the cheque back?

Mikeyorks

zppp wrote: »

Where has the OP stated so far that they have recieved the cheque back?

A reasonable assumption? :-

today we had a customers cheque returned unpaid from our bank

...... followed by :-

which I believe as the cheque is 001

......... most small businesses don't image / copy cheques to that degree before banking them - in that they know the serial number?