Cheque bounce charges can be a terrifying experience for anyone who is possibly not aware of their aftereffects or consequences. These charges are levied or applied when a cheque is returned by the bank without making any payment against it. There can be multiple reasons for the banks to dishonor the payment of the cheques, inadequate balance of the drawer's account is one possible reason.
Let’s find out 4 things that you must know about cheque bounce charges to avoid any disturbing situation:
Legal Action can be Taken:
If a cheque bounces as a result of insufficient funds, then the bank may be free to initiate legal action against the person who issued the cheque to make the payment. The action can result in a fine and imprisonment, or both. It is vital to safeguard that there are sufficient funds in the account before issuing a cheque to avoid legal action.
The Cheque Bounce Can Leave A Negative Impact on the Credit Score:
A cheque bounce can have a severe impact on your credit score. It can disturb your ability to get loans, credit cards, or any other form of credit. A bounced cheque reflects poorly on your monetary honesty and reliability, and lenders may be cautious to give you credit or a loan in the time to come. Therefore, it becomes 100% mandatory to avoid cheque bounces at all costs.
The Charges For Cheque Bounce May Vary:
Cheque bounce charges vary from one bank to another bank, and the charges also depend on the amount of the cheque. Generally, the charges range between Rs. 250 and Rs. 5000. However, some banks may reserve the right to decide the cheque bounce charges depending on the amount of the cheque. It is indispensable to check the bank's policy on cheque bounce charges before issuing a cheque to avoid any unpleasant surprises.
Online Transactions Have Cheque Bounce Charges:
Online transactions also have cheque bounce charges. If an online transaction fails due to insufficient funds in the account, the bank may charge a cheque bounce fee. Due to this, it is 100% essential to ensure that you maintain sufficient funds in the account before making any online transactions.
The Closing Thought:
The cheque bounce charges can be circumvented by guaranteeing that there are adequate funds in the account before issuing a cheque. It is also important to examine the bank's policy on cheque bounce charges before you issue a pay cheque. Your initiative to handle a cheque can save you from a plethora of legal matters, including payment of Cheque bounce charges. Your association with the cheque bounce lawyers can help you a lot.
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