Bounced Cheque
A cheque returned unpaid due to insufficient funds or other bank refusal.
Detailed Description
Bounced Cheque
What is a bounced cheque?
A bounced cheque is a cheque that a bank refuses to process due to insufficient funds or because the account has been closed.
What are the common causes of a bounced cheque?
Common causes include insufficient funds, errors in the cheque, post-dated cheques, or the account being closed or frozen.
What are the consequences of bouncing a cheque?
Consequences can include bank fees for the issuer, potential fees for the payee, loss of trust, and possible legal action.
How can individuals prevent bounced cheques?
To prevent bounced cheques, maintain sufficient account balances, monitor transactions, double-check cheque details, and consider overdraft protection.
Can a bounced cheque affect credit scores?
While a bounced cheque itself may not directly affect credit scores, subsequent legal actions or collections can negatively impact creditworthiness.