Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable part of any business transaction today. As a result, it has become increasingly important to safeguard a business against financial losses arising from the receipt of fraudulent or bad checks.

A check can be considered bad if it is bogus or the NSF checks (non sufficient funds check), also referred as bounced check.

The issuance of a NSF or bad checks is an unlawful act and can attract civil and criminal penalties. The onus of a bad check is assigned to the person signing the check and such a person, upon incrimination, is likely to face legal action as specified by the judicial system of the state.

A bounced or NSF check is the result of insufficient funds in the account of the issuer of the check. An NSF check leads to the disruption of a healthy business cycle and also attracts bad check/NSF fees for the issuer of the check. The credit worthiness of the issuer is put under circumspection, which may blemish the business reputation of the issuer.

Measures Against Bad and NSF Checks

The receiver of the check should evaluate the credit worthiness and conduct due diligence of the business/financial repute of the issuer of the check.

A businessperson wanting to mitigate the risk of NSF or bad checks can employ the services of a check guarantee company. Check guarantee companies take upon themselves the liability of a bad or NSF check for a predefined fee.

The receiver of a NSF or bad check can transfer or sell the check to commercial collection agency, which will pay the receiver an up front sum of a certain percentage of the face value of the check. Later, the commercial collection agency employed tries, with good success rate, to recover the check amount from the issuer by employing difference collection techniques.

Check transactions, which constitute an important part of business payments, can prove to be detrimental to the financial health of the business itself, unless they are handled carefully.

The collection of bad debts arising due to NSF and bad checks can become an unwieldy task for a business. Commercial collection agencies are equipped with the necessary know-how and resources to tackle such cases involving fraudulent checks.

Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.

---

ChexSystems: Who They Are and How it Affects You

ChexSystems is a company that maintains a subscriber membership service... Read More

Credit Cards

Credit cards are a form of unsecured credit. The issuer... Read More

Four Tips How Homeowners Can Rebuild Their Life After a Foreclosure

Let's face it, if you are facing the possibilities of... Read More

Credit Card Expenses Are Killing Your Budget!

Do you know the costs associated with your credit card?... Read More

Ten Steps To Building A Good Credit History

Are you thinking of buying a house? Do you want... Read More

Good Credit Is Not A Good Reason To Borrow More Money After Youve Achieved Financial Freedom

The most important thing for you to remember is that... Read More

Credit Card Security Advice

Which of the following is the biggest threat to your... Read More

Your Credit Score

Credit scores: all lenders use credit scores to determine interest... Read More

Making Sense of the Information in Your Credit Report

If you've ever applied for a credit card or loan,... Read More

Lower Your Credit Card Interest Rate Now!

With today's credit card companies, there are many opportunities to... Read More

My Student Credit Card Adventure

And some practical advice too!My first credit card?I remember my... Read More

What You Didnt Know About Your Credit Card Numbers

Have you ever really looked at your credit card and... Read More

Do You Know The Top Five Credit Card Mistakes?

When you're dealing with credit cards, you're playing with fire.... Read More

All About Balance Transfers

What is a balance transfer?A balance transfer can be explained... Read More

Tips for Credit Card Surfers

Moving money from credit card to credit card to take... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

Five Reasons to Repair Your Credit Score - You Can Do It Yourself

There are multiple reasons that tell us why we should... Read More

Recognizing the Signs that You Might Need Credit Counseling

Most families in America today have a credit card; some... Read More

Credit Score ? for Scoring the Right Loan

Somebody once said, "There is always a way of knowing... Read More

Practical Suggestions for Protecting Yourself From Identity Theft

It's no surprise that thousands of Americans are victimized by... Read More

Low Interest Credit Cards: A Thing of the Past?

With interest rates rising, low or zero percent credit cards... Read More

Borrowing on a Credit Card

One of the easiest ways to borrow money of a... Read More

Bounced Checks - Straight Talk On Dealing With Bad Checks (NSF)

A check can be considered bad if it is bogus... Read More

Credit Card Entrapment - The Secrets are Out

Have you ever wondered why your credit card bill is... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

Credit Report And Correction Techniques

The three major credit bureaus, Experian, Equifax and Trans Union... Read More

Bankruptcy vs. Credit Counseling: What Should I Do?

Credit Counseling and bankruptcy are both ways to relieve the... Read More

How To Survive In A Plastic World, Qualifying For Credit Card

Let's face it, having credit is no longer a choice.... Read More

Is it Safe to Use Online Car Finance?

Online car finance is convenient. You can apply over the... Read More

How to Order the Right Credit Reports to Repair Your Own Credit

In this week's article, I am going to offer some... Read More

What Is A FICO Score?

A credit score is most commonly known as a FICO... Read More

7 Consumer Credit Laws You Should Know if You are Trying to Repair Your Credit

There are seven consumer credit laws you should be aware... Read More