managing your accounts
unpaid ckecks

unpaid checks: what to do

WHAT SHOULD I DO IN THE EVENT OF AN UNPAID CHECK?

A deposited check may return unpaid in five specific situations. In every case, action is required.

Upon the return of an unpaid check, your branch will debit the check amount from the account. It will send you a debit notice by mail, accompanied by the unpaid check with a note specifying the reason the check was not paid.

1FIRST CASE: AN ISSUE WITH FUNDS

In the event a check returns unpaid due to default or insufficient funds, you will not pay any fees.

The amount debited from your account will be equal to the total amount of the check (or will be less than this amount, if the check issuer's bank has decided on a partial payment).

We recommend you contact the person to whom you sent the check in order to come to an agreement on a new check issue if their banking situation allows it. If not, you should set up another method of payment (e.g. a cash payment) with this person and return the check to them after payment in order to allow this person to resolve this non-payment incident with their bank.

2SECOND CASE: PAYMENT IS STOPPED ON THE CHECK

Payment may be stopped on a check due to loss, theft, fraudulent use or the receivership or court-ordered liquidation of the bearer.

Contact the person to whom you sent this check in order to come to an agreement on a new check issue if the issuer of your check lifts this stop payment order with their bank. If not, you should set up another method of payment (e.g. issuing a new check, a cash payment, etc.) with this person and return the check to them after payment.

3THIRD CASE: THE CHECK IS UNLAWFUL

The check does not include a mandatory piece of information or a signature is inconsistent or insufficient: contact the check issuer in order to ask for the check to be amended.

You will then be able to resubmit the check. You can also set up other another method of payment (e.g. a cash payment, issuing a new check, etc.) with this person and return the check against payment thereof.

You forgot to sign the back of your check: endorse the check and submit it for payment.

4FOURTH CASE: THE CHECK HAS EXPIRED

The check was submitted after one year and eight days, starting on the date the check was made.

The only solution: ask the person who sent you this check to set up another method of payment or to write you a new check.

5FIFTH CASE: THE ACCOUNT IS UNAVAILABLE

This may occur when the issuer's account has been subject to a garnishment, a third party holder notice or the termination of a joint account agreement. Or, in the event that the holder of the account on which the check was issued has passed away.

In this case, you can contact the person (or a close one, in the event of death) and agree upon a new check issue if their bank situation allows it or set up another method of payment (e.g. a cash payment, etc.) with this person.

IF YOU CANNOT CONTACT THE CHECK ISSUER

Please contact your branch advisor.

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For assistance or to make a claim/contest a charge, your advisor can be reached on their direct line (a standard rate call).