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How do I recover value of a bounced cheque with help of Debt Collection Lawyer?

A lot of times the people get the cheques but when they go to the bank to get the money from the cheques, the cheques get bounced. This disturbs the people a lot. This is because when they think that they will now reap the fruits of their hard work, all the things seem like going in vain. This is wrong and it should be discouraged.

The people take the services of Debt Collection Services with the help of a Debt Collection Agency

What is a bounced cheque?

A bounced cheque is the one which gets rejected by the bank due to some reasons. A bounced or dishonoured cheque is returned back to the person who submits It in the bank. When the bank rejects the cheque, it provides the account holder with a Cheque Return Memo as well. the main reason why the cheque gets bounced is written on the memo

A bounced cheque cannot be processed.

When the account holder doesn’t have sufficient funds, the cheque gets bounced. What happens sometimes is that a person will give a cheque to someone with the amount mentioned on it more than the account holds. When the person goes to the bank to get the money written on the cheque, the cheque gets bounced because of the insufficient money in the bank.  The bank bounced back such cheques and do not honour them at all. note that the NSF fees are charged by the banks when it bounces the cheque from the writer of the cheque.

Punishments

Well, giving someone a bounced cheque comes under the category of the criminal offence. This is the reason it’s punishable.

Reasons

Here are some of the reasons for Cheque Bounce that you would want to know;

Insufficient funds

When the payee doesn’t have sufficient funds in its account, the cheque will not be honoured by the bank at all. in this way, the cheque will get bounced and the person will not get the money that is written on the cheque. In addition to that, an NSF fee will be charged from the one who wrote the cheque.

Problems with Date of the Cheques

a lot of the people submit the cheques to cash them very late. They keep on delaying until the date of cashing the cheque passes away. When they go to the bank to cash the cheque after the date, their cheque gets bounced. In this case, they need a new cheque to be issued to them.

Signature Mismatch

The person who has signed the cheque should make sure that he has signed the cheque with the same signatures that he uses on all other cheques. When the signatures of the writer of the cheque don’t matches, the cheque gets bounced. The security issues come under this case. This is because if the banks start honoring the cheques with the mismatched signatures, a lot of security issues will get raised and people will start playing with the signatures as well.

The matching of the signatures is a must for the cheques.

The difference in Amount in Words and Numbers

The amount written in words should be the same as that of the amount written in numbers. If this is not so, the cheque will not be assisted and it will get bounced.

Scribbling, Overwriting on Cheque

A lot of writing problems arise in the cheques and they become the reason behind the bouncing of the cheque. Some people overwrite or scribble on their cheques. When such cheques are taken to the bank, they get bounced.

  • Legal action is to be taken for a cheque that gets bounced if needed.
  • The person who writes the cheque is taken to the court. A notice is sent to him but if he still doesn’t pay the money, a case is filed against him.
  • In the case of the legal notice, the writer will have to pay back the money within 15 days.
  • If the person will don’t responds or pays back the money, a criminal court case will be filed against him within 45 days when the period of the notice gets expired.
  • The cheque can be submitted again after a period of 3 months. This is done when the writer assures the person that the cheque will not get bounced this time.
  • When you receive a memo from the bank, you can send a notice within 330 days to the issuer.
  • If the payment is not made within 15 days a cheque bounce case can be filed against the person.
  • If the case is not filed, the case will be considered as a false bounced cheque
  • File the complaint with all the documents that show that the cheque really got bounced
  • After the complaint is filed, the issuer has to appear in the court
  • For the recovery of the pending amount, a civil amount or summary suit can also be filed.

Debt Recovery Services should be taken by the people or unpaid invoices recovery, bounced Cheque recovery and other stuff to get the money back on time.

Leading Legal Consultants & Lawyers in Dubai

HHS Lawyers in Dubai is one of the top law firms in Dubai. We have more than 10 years of experience that gives us the edge in performing. We can act as your debt collector to increase your chances of recovering your debts before it’s written as a bad debt.

You can contact us now and book a free consultation with one of the best lawyers in Dubai regarding your situation so it can be given solutions to now.

M. Al Khairy, LL.B. is a Senior Partner of HHS Lawyers in UAE. Practicing law for almost a decade, he has in-depth knowledge on UAE legislation with particular expertise on legal drafting, contract drafting, labor disputes, family law, and regulatory compliance for business organizations. Al Khairy also provides counsel on legal rights and obligations in the UAE to clients, including individuals and businesses subject to investigation or prosecution under Criminal Law by major regulators. Read more