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What are the legal steps to take if your cheque bounces?

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    Arshita Anand
    Twitter

Afraid of being scammed? Has your check bounced? Do the following to get it rectified:

1. Get the Bank Slip

When the bank can't process your cheque, they will give you a slip explaining why. This is called a "Cheque Return Memo". Make sure you get this slip from your bank.

2. Talk to the Person

Contact the person who gave you the cheque. Let them know that the cheque bounced. Sometimes, this might be a mistake, and they might fix it right away.

3. Send a Formal Notice

If the person doesn't solve the problem quickly, you need to send them a formal letter:

  • Write the Letter: In the letter, explain:

    • The details of the cheque (like the amount and date).
    • The reason the bank gave for the bounce.
    • That they have 15 days to pay you the money.

  • Send the Letter: Mail this letter to the person using a method where you can get proof they received it, like registered mail or courier. Keep the receipt as proof.

4. Wait for 15 Days

Give the person 15 days from the day they receive your letter to pay you the money. If they do, great! If not, move to the next step.

5. Go to Court

If the person doesn't pay within 15 days, you can take legal action:

  • Find a Lawyer: Get help from a lawyer who knows about cheque bounce cases.
  • File a Case: Your lawyer will help you file a case in the local court.
  • Prepare Your Papers: You will need to give the court:
    • The original bounced cheque.
    • The bank slip (Cheque Return Memo).
    • A copy of the letter you sent.
    • Proof that the person received your letter (like the mail receipt).

6. Attend Court Sessions

Go to Court: You and your lawyer will need to go to court sessions. Your lawyer will speak for you, but you might need to be there sometimes.

Show Your Proof: Show the court all the papers and proof you have. The court will look at everything and make a decision.

7. Court's Decision

If the court decides in your favor, the person who gave you the cheque might have to:

  • Pay a fine.
  • Go to jail for up to two years.
  • Both, pay a fine and go to jail.

8. Extra Step to Get Your Money

If you still don't get your money after the court's decision, you can also file a separate case in civil court to get your money back. Conclusion

When your cheque bounces, start by talking to the person and then send a formal letter if needed. If you don't get your money in 15 days, take legal action with the help of a lawyer. This simple process can help you get the money you are owed.

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