managing your accounts
resolving non sufficient funds checks

RESOLVING NON-SUFFICIENT FUNDS CHECKS

NON-SUFFICIENT FUNDS CHECKS

Issuing a non-sufficient funds (NSF) check is a serious action that will lead to the suspension of your banking privileges regarding checks. Learn how you can avoid this embarrassing situation and assess the incurred risks, below.

WHAT YOU NEED TO KNOW

Before rejecting an NSF check, the bank must inform you of the consequences of having insufficient funds by any appropriate method.

BNP Paribas will inform you of this by regular mail. In order for the check payment to go through, you must deposit funds into your account as soon as possible after receiving this letter. You should also contact your advisor.

If you do not deposit these funds into your account, you will receive a legal notice informing you that your banking privileges have been suspended.

Once this letter has been sent, and under penalty of criminal sanctions, you are prohibited from issuing any check, regardless of its amount or the account it is issued from, including from accounts held by other banks. You can, on the other hand, use cashier's checks.

LEGAL OBLIGATIONS

You must immediately return the counter checks and checkbooks in your possession and/or in the possession of your agents. You must also inform the bank of the names and addresses of any future agents who may possess your counter checks or checkbooks as soon as possible.

OBLIGATIONS REGARDING YOUR BNP PARIBAS ACCOUNT AGREEMENT

You must return all payment cards issued by the bank that operate on all the individual or joint accounts that you hold. Your overdraft facility and authorization benefits granted by the bank will be immediately cancelled.

SUSPENSION OF BANKING PRIVILEGES

Issuing a non-sufficient funds (NSF) check is a serious action that will lead to the suspension of your banking privileges regarding checks. Learn how you can avoid this embarrassing situation and assess the incurred risks, below.

Customers whose banking privileges have been suspended will be registered in Banque de France's Central Check Database (FCC, Fichier Central des Chèques), which can be viewed by all credit and payment institutions.

Your suspension will continue until the matter has been completely resolved (or, if not resolved, for five years).

In order to be removed from the FCC, you must prove to the bank (by check deposit or account entry) that all checks that were unpaid or whose funds were frozen have been paid.

HOW TO RESOLVE AN NSF CHECK

You have three possible solutions:

1RECOVER THE CHECK

Recover the check from the beneficiary in exchange for payment by another method (e.g. cash) and return it to your branch. Returning it will serve as proof that it has been resolved.

You must also fill out, date and sign the incident resolution declaration on the back of the letter you received (legal notice) and return it to your branch.

Fees billed: flat fee for checks rejected due to insufficient funds, fees for the prior legal notice for an NSF check, request for a non-payment certificate.

2deposit funds into your account

Deposit sufficient funds into your account so that the check may be paid when deposited. In this case, you can use your account statement, which will list the account entry corresponding to this payment, as proof that the matter has been resolved.

You must also date and sign the incident resolution declaration on the back of the letter you received (legal notice) and return it to your branch.

Fees billed: flat fee for checks rejected due to insufficient funds, fees for the prior legal notice for an NSF check, request for a non-payment certificate.

3deposit funds at your branch

Deposit the funds corresponding to the amount of the rejected check with your branch by requesting, in writing, that they be assigned the payment of this check. Your branch will freeze these specific funds, which, failing the presentation of the check, will be repaid to you one year after the deposit is made.

You must also fill out, date and sign the incident resolution declaration on the back of the letter you received (legal notice) and return it to your branch.

Fees billed: flat fee for checks rejected due to insufficient funds, fees for the prior legal notice for an NSF check, request for a non-payment certificate.

Rates

Please see the BNP Paribas Rates and Conditions.

Too many fees?

The bank collects fees in order to partially cover the specific processing costs for NSF check rejections (prior information, cost of rejecting the check, legal notice, declaration to Banque de France and freezing.) The fee amount is capped by decree.

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