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Kansas Notice of Dishonored Check - Civil - Keywords: bad check, bounced check

State:
Kansas
Control #:
KS-401N
Format:
Word; 
Rich Text
Instant download

Description

This is a Notice of Dishonored Check - Civil. A "dishonored check" (also known as a "bounced check" or "bad check") is a check which the bank will not pay because there is no such checking account, or there are insufficient funds in the account to pay the check. In order to attempt the greatest possible recovery on a dishonored check, the business owner, or any other person given a dishonored check, may be required by state law to notify the debtor that the check was dishonored.

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FAQ

Contact the district attorney. Some states have a bad-check restitution program where the DA's office has someone contact the check writer and urge them to pay up. Work through a collection agency. Use a check recovery service. Take your customer to court if they refuse to resolve things.

If you don't pay the amount of a bounced check within the time frame your bank specifies, it can close your account.If your financial institution doesn't cover the check, it bounces and is returned to the depositor's bank. You'll likely be charged a nonsufficient funds fee, also known as an NSF or returned item fee.

If you are given a bad check, you can sue for the amount of the check plus bank fees. You can also add damages to your claim.

Whether you write or receive a bounced check also called a nonsufficient funds, or NSF, check it will cost you. Write one and you'll owe your bank an NSF fee of between $27 and $35, and the recipient of the check is permitted to charge a returned-check fee of between $20 and $40 or a percentage of the check amount.

When determining your bounced check fee, consider this: On average, a bank will charge YOU about $30 for a bad check, so you should charge a penalty of $35-$50. Why? Because it's likely you will be (or you should, anyway) immediately sending out notice to the tenant regarding the bad check.

Bouncing a check is usually a crime only if you intend to defraud the payee. In other words, the payee must be able to prove that you knew your check would bounce and therefore you intended to commit check fraud. Fortunately, most consumers don't wait long to repay bad checks and aren't charged with criminal penalties.

The amount of time merchants can allot for you to pay off a bounced check is rooted mainly in state laws. Familiarize yourself with your state's law and act accordingly in terms of paying of the bad check. In general, laws allow for bad check writers to be given anywhere from two to three years to pay their debt.

If a cheque bounces due to insufficient funds or any other technical reason, such as signature mismatch, their respective banks charges for both the defaulter and the payee. The penalty charges for cheque outward return are close to Rs. 300 for most banks, while charges for cheque inward return are about Rs. 100.

If the check amount exceeds certain thresholds, the crime may be treated as a felony. Civil penalties apply in all cases, with a common penalty amount equivalent to the check's face value, a multiple of the check amount with a cap, or the check amount plus court and attorney fees.

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Kansas Notice of Dishonored Check - Civil - Keywords: bad check, bounced check