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.

---

Give Yourself Credit

The Beginning of the Credit Card EraIn 1951, Diners Club... Read More

Is Plastic Making You Happier?

If you're like most people, you probably own at least... Read More

What Is A Credit Report?

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

Credit Report ? Watch Out for Parking Tickets

The economic downturn of the last five years has affected... Read More

Shoppers Beware - Tis The Season

It's the number one complaint from consumers and it only... Read More

Free Credit Report ? A Website Typo Could Be Costly

In 2003, Congress passed the Fair and Accurate Credit Transactions... Read More

Understanding Your Rights Under The Equal Credit Opportunity Act

It wasn't all that long ago that lenders blatantly discriminated... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

How To Get Out Of Credit Card Debt

If you're like the average person, let me warn you... Read More

Credit Repair Kit Sound To Good To Be True? It Is.

A lot of people have bad credit. It is unfortunate... Read More

Bank Robbery Growing In U.S.

Bank robbery has grown to become a huge problem in... Read More

The Art of Stoozing to Make Money from Credit Cards

Make Money from StoozingStoozing, this is a sophisticated method of... Read More

Manage Your Credit Wisely

Getting your first credit card is a big deal and... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be... Read More

What You Need To Know About Credit Cards

What is a credit card? A credit card is... Read More

Know Your Credit Card Rights

When you apply for a credit card, the application that... Read More

What Are the Most Common Ways to Commit Identity Theft or Fraud?

It's the number one source of consumer complaints at the... Read More

What You Need to Know About Interest Rates

For all people shop around for the best rate, there... Read More

Ethical Finance: Who Benefits From Our Spending?

On one hand consumers are being universally criticised for running... Read More

Convenience Can Be Costly

You've just opened your credit card bill and attached to... Read More

Which Credit Bureau Should I Use To Check My Credit Report?

There are three main credit bureaus in the United States;... Read More

Boosting Your Credit Score To Get The Best Credit Card Deal

Making Your Credit Rating Work For YouOne of the basics... Read More

Avoiding Credit Card Traps

The next time you open your credit card statement, take... Read More

How Businesss Mess Up Their Credit Policies

In "Become the Squeaky Wheel" a book recently published, Michelle... Read More

Credit Counseling: Could it Work for Me?

In the face of financial hardship, many seeking a responsible... Read More

Why Credit Cards are a Bad Idea

Credit cards are just so convenient, aren't they? There's no... Read More

The Three Largest Factors In Your Interest Rate

There are three major factors that affect how much you... Read More

4 Steps You Can Take If Your Online Credit Card Application Has Been Refused

Help! I've Been Turned DownYou received an envelope in the... Read More

The Top 5 Secrets to Managing Your Credit Cards?So They Won?t Manage You

You've probably never heard of Frank X. McNamara, but he... Read More

14 Common Credit Mistakes

Establishing credit and wisely managing your credit becomes easier when... Read More

Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions

What are the avenues available to businesses with weak credit... Read More

Top 5 Reasons To Check Your Credit Report Regularly

#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More

Is it Safe to Use Online Car Finance?

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