These days in the business world, emails or telephone calls are generally used for communication purposes. However, writing a letter to the relevant person is still in practice. When we write letters, we are sure of more concrete recordkeeping. Therefore, we should always choose to write a letter when we have something very important to convey to others.
What is notifying a debtor of a returned check letter?
When the debtor wants to guarantee that he will return the money by a specific date, he gives a check to the creditor and asks him to get it cashed when the deadline comes because the debtor will transfer the money to his account. However, if there are not sufficient funds in the account of the debtor, the bank will return the check instead of issuing the cash. This is also called bounced check. Whenever this happens, the creditor must write a letter to the debtor to tell him about the bounced check.
A letter informing about a bounced check is written in a very soft tone. Although it sometimes annoys the creditor and also casts doubt on the credibility of the lender, the creditor still should try to remain gentle and kind and his tone should reflect it. There should not be any such statement in this letter that shows that the creditor is threatening or blackmailing the lender as it is a big crime.
What are some tips for writing to the debtor about the bounced check?
We hope that the tips given below will be very useful for you:
- Since the purpose of this letter is to inform the debtor about the bogus check he gave to the creditor, one should never go off the track while writing this letter. It should be made certain that your tone in the letter is firm because you need to ask the debtor to restore the money that he owes.
- You should formally inform the debtor that the check he gave you could not help you recover the money that you gave him as a loan. You should also mention the check number so that the debtor can look into the matter and can reissue you the check.
- If you are annoyed by the bogus check, ask the reader to pay you as soon as possible. In case he has any kind of penalty to suffer, do mention it in the letter.
- This is a formal letter that you cannot fill with unnecessary and extra details. You need to stay to the point and for this purpose, add only pertinent details to the letter. Since this letter is formal, there is no such need to give value to unnecessary stuff.
- Although you are angry with the debtor who has shown an extreme level of unprofessionalism by not sending you the right form of a check, you don’t need to express your anger via letter as it is kept as proof of how you talked to him. There should not be any element of disrespect in the letter.
- Provide all the details regarding the check that has been bounced, the total amount the debtor is liable to pay, the deadline before which the loan was to be cleared, and much more.
- Keep the letter’s written structure in such a way that the reader finds this letter to be informative and not threatening or an angry note.
To help you get started with this letter, below is a sample letter:
Address of the receiver:
This letter is being written to inform you about the fact that the money is taken by your company as a loan in August 20XX could not be recovered from the bank with the help of a check you gave us. This is to inform you that the check got bounced by the bank and returned to us because of a lack of funds in your account.
I would like to request you to pay us through any other mode of payment so that we can easily get our money back.
Thank you so much for your cooperation. We are looking forward to hearing from you.
File: Word (.docx) 2007+ and iPad
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