Cheque could be said as an exchange bill that is drawn on a banker and is payable on demand. Talking in legal aspect the one who issues cheque is known as a ‘drawer’ and the one in whose favor it is issued is known as a ‘payee’. You have generally heard about the term ‘bounce cheque’ but do you know some really important things about it?
Understanding the term ‘bounced cheque’
A cheque that could not be taken into process due to the insufficient amount of money in the account of the concerned person is known as a bounced cheque. Bank institutions return these cheques in spite of honoring them, another name of these cheques are rubber cheques. Banks also charge the defaulters with fees of non sufficient funds. Putting default cheques in bank is a criminal offense and is considered illegal. In order to handle these legal matters, one could easily look out Lawyers For Bounced Cheque In Pune. In order to eliminate bouncing of cheques, people also use protection from overdraft or they include credit line to their accounts.
Bouncing of cheques is not good at all
A fee that is charges by the banks is one of the consequences of bouncing cheques. In some casesthere is also a charge assessed by payee. For an instance, if you write a cheque to a shop and it bounces, then the owner of that shop may hold the right to deposit the cheque again with fees of bounced cheque. There are also some cases of cheque bounce in which payee reports this matter to debit committee like chexsystem.
Different reasons of cheque bounce
There could be a number of reasons apart from insufficient funds, due to which a cheque is bounced. And some of them are-
- Cheque has been overwritten
- In case signature do not match
- Cheque was applied after the time period of more than three months
- Payment is been stopped by the holder of account
- The account number do not match
- Customer is dead
Along with all these reasons there are some more like customer’s insolvency or when cheque is crossed etc. Therefore, if you have become a defaulter due to any of such reasons then you could seek Top Lawyer For Cheque Bounce In Pune.
Role of bank in it
In case of the cheque bounce, the bank which draws it, issue a memo of cheque return as soon as possible to payee’s banker and they also mention the reason of non-payment. After that banker of payee give that bounced cheque as well as memo to payee. The payee or holder could submit the cheque again within the time period of three months from the mentioned date on the cheque, in case he or she thinks it may not bounce the next time. In case of failure in making the payment, payee gets the right of taking the legal help.