Businessmen often use cheques for payments of bills, loans, salary and so much more. They have become really important because of them being a great medium of payment. For the smooth cash flow of the companies and economy of the country, governments encourage timely cheque payments.

Although cheque payments may be very beneficial and time-saving yet they have some issues. The parties often write the cheques but when the other parties go to the bank for cashing the cheques, their cheques get bounced. There can be a number of reasons behind it and one of the biggest reasons is insufficient money in the bank. To deal with such issues of bounced cheques recovery, businesses take debt recovery services through debt recovery agencies.

Here is what you should do to deal with bounced cheques.

Whenever someone pays you a cheque, you are supposed to submit it in your bank for getting the payment. If the cheque you submit gets bounced, you will be notified by the bank for the reason of the bounce.

The reason for cheque bounce is of immense importance because this is something that will guide you regarding your next step. Stop payment or insufficient funds are the main reasons for cheque bouncing.

In order to get your payment quickly, you must follow a proper procedure. This will increase the chances of you getting your payment back.

ensure the following conditions;

  • The payment must be drawn by the bank account which is maintained by the payer.
  • The cheque must be submitted in the bank within its validity period.
  • The cheque must have been bounced due to insufficient funds or stop payment
  • The payee is to make a demand within 30 days of cheque bounce
  • The complaint should be filed within one month period from the expiry of 15 days

Cheque bounce case step by step procedure in UAE

to recover money from a bounced cheque, follow the easy steps till you have time;

  • The payee must submit the cheque in the bank to collect the notification fee in order to know about the reason for cheque bounce. On the notification payee collected from the bank, it would be clearly mentioned that what caused the bounce of the cheque.
  • Send a legal notice along with the cheque details, the reason behind the bounce of the cheque and amount to the drawer within 30 days of the cheque bounce event. Notify the payer to send the money back within 15 days.
  • If the payment is not made within the given time limit, file a complaint against the drawer but do not forget to file the complaint within 30 days of the end of the notice period.
  • The court will issue a summon to the drawer so that he/she may present himself/herself in front of the court of the law. An appropriate order will be concluded by the magistrate after the hearings.

HHS Lawyers can surely help you with all the filing processes if you do not have enough time to carry out the processes on your own. Debt recovery services may increase the chance of debt recovery in a very short time period.