Notify a Debtor of a Returned Check • Example Letters, Guides and Samples

Guides

This letter's purpose is to notify a debtor that the bank returned a check due to insufficient funds. Since you still must recover the funds the debtor owes you, you should use a firm but courteous tone.

How to write this credit letter:

  1. Notify your customer that the check he or she used for payment has been returned. Specifically mention the check number and amount.
  2. Request immediate payment. Be specific about the type of payment you now require, such as a cashier's check or a money order. Specify the amount of any penalty to be added.
  3. Thank the customer for his or her cooperation in correcting the situation.

Example Letter #1

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Your check #123 in the amount of $125.00 was returned to us marked "insufficient funds." Please send us a cashier's check or money order in the amount of $140.00 ($125.00 + $15.00 returned check fee) no later than March 31, 2019. If you have any questions about this, please call me at 555-5555. Thank you for your cooperation.

Example Letter #2

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We are sorry to inform you that check #123 for $100 was returned to our store due to insufficient funds in your account. Please correct this situation as soon as possible. You may do this by bringing cash or a money order for the full amount plus $15 for the returned check fee, for a total of $115, to the service desk in our store. We appreciate your long relationship with our store and value your business. Thank you for your prompt attention to this matter.

Example Letter #3

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Doe bank has notified us that your check #1234, in the amount of $343.50, is drawn on insufficient funds. We require a $20.00 returned check fee in addition to the original amount. Please remit $363.50 in the form of cashier's check or money order by November 1. Thank you for your prompt attention to this matter.

Example Letter #4

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I have been notified that your layaway installment check #123, in the amount of $25.00, has been returned by your bank due to insufficient funds. As I am certain this is due to an oversight, you may avoid our $25.00 returned check fee by making the layaway payment in cash at our customer service desk during business hours before November 15. We thank you for your business and appreciate your cooperation.

Write Your Letter Step-by-Step

1 Notify your customer that the check he or she used for payment has been returned. Specifically mention the check number and amount.

Sample Sentences for Step 1
  • Your check #928 for $575.00, which you mailed to us for last month's rent, has been returned marked "insufficient funds."
  • Your check #213 for $75.00 was returned to my office marked "Account closed."
  • The check you gave our cashier in the amount of $212.67 was returned to us due to insufficient funds in your bank account.
  • We received your check (#715) for $25.00; however, the bank has returned that check marked "insufficient funds."
  • The check #2101 you sent us on May 5 in the amount of $53.69 has been returned from the bank stamped "insufficient funds."
  • Enclosed is check #107 for $799.00. The bank returned it to us with an explanation that your account was overdrawn.
Sample Phrases for Step 1
  • enclosed is check #
  • has been returned to us
  • has again been returned to us
  • have not heard from you since
  • in the amount of
  • insufficient funds in
  • marked "insufficient fund."
  • marked "Account close."
  • redeposited your check
  • returned to my office
  • the bank has returned your check #
  • the check you gave our cashier
  • the check you sent us on
  • was returned unpaid
  • was returned by your bank
  • which we deposited on
  • which we received on
  • which you mailed to us
  • with an explanation that

2 Request immediate payment. Be specific about the type of payment you now require, such as a cashier's check or a money order. Specify the amount of any penalty to be added.

Sample Sentences for Step 2
  • To avoid a penalty, please pay the full amount due immediately with a cashier's check or money order. Payments not made by the end of this month are automatically registered with a collection agency.
  • Please call us immediately to clear up this problem.
  • I now must ask you to resubmit payment in the form of a money order or cashier's check.
  • Please send us a new check for the full amount of your bill plus the $15.00 penalty before June 15.
  • Please remedy this situation by sending us a money order for $49.99 ($29.99 for the outstanding bill plus $20.00 for the returned check fee).
  • Please send us your payment within the week. If we receive your check before January 10, this overdraft will not adversely affect your credit line with us.
  • We would appreciate a replacement payment by December 10.
  • Because your bank account lacked sufficient reserves to cover your last check, we ask that you now send a money order or cashier's check for the full amount.
Sample Phrases for Step 2
  • a collection agency
  • as well as the returned check charge of
  • as a replacement
  • ask that you now send
  • avoid accruing additional interest
  • avoid turning this over to
  • avoid further problems
  • balance is due immediately
  • by return mail
  • call us right away
  • cashier's check or money order
  • clear up this problem
  • could negatively affect your
  • in addition to the bank charge of
  • keep your account current
  • must receive payment by
  • need to receive payment by
  • pay by certified check
  • pay your bill by
  • please pay the full amount
  • potential damage to your credit rating
  • receive your payment within
  • remedy this situation by
  • resubmit payment in the form of
  • send payment in the form of
  • unless we receive payment by

3 Thank the customer for his or her cooperation in correcting the situation.

Sample Sentences for Step 3
  • Thank you for your understanding and cooperation.
  • We would appreciate your immediate and full cooperation.
  • Thank you in advance for your prompt response. If I may assist you with this matter, call my office at 555-5555.
  • It is extremely important that you act immediately. Thank you for your cooperation.
Sample Phrases for Step 3
  • as soon as possible
  • assist you with this matter
  • call my office at
  • correcting this situation
  • for your cooperation in this matter
  • for your cooperation
  • immediate and full cooperation
  • in resolving this problem
  • is extremely important that
  • look forward to
  • need not be reflected on your credit record
  • resolve this situation
  • resolve the matter immediately
  • thank you for
  • trust that you will
  • understand our position
  • will appreciate your
  • will be happy to
  • your prompt response