11 Reasons Why Most Bank Checks Are Being Dishonored

There are various reasons why bank checks are not being accepted from drawers:

1. Insufficient Fund: When the amount written on a check is more than what the drawer has in its account in the bank.

2.The Death of the Drawer: If the bank receives information of the death of its customer, the bank will not honor any check presented on the account of the dead customer, until further notice.

3. Irregular Signature: If the signature the drawer signals on the check differs from the specimen signature in the bank.

4. Non-Existing Account: Sometimes, swindlers who have no bank account but possess false check books may issue check to those whom they have swindled.

5. Bankruptcy: If one is judged by a law court to be unable to pay his debts in full, the bank will dishonour any check presented on behalf of that customer.

6.Frozen Account: If court orders or a military government decrees that some people's account be frozen, the bank must definitely dishonour all checks bearing the account's numbers.

7.When There is Attention: If anything is canceled on a check, the bank will dishonour such a check, except the drawer signs its signature above or under the altered word.

8. A Post-Dated Check: If this is presented for payment, the bank will dishonour such a check.

9. A Stale Checkd: A check that has been delayed for more than six months of the date written on it, if presented for repayment must be dishonored by the bank.

10. If There Is A Difference Between The Amount Written In Words And That in Figuresd: If for instance, the drawer writes thirty dollars only in words and $ 20 in figure.

11. When Payment is Stopped: If the drawer requests a bank not to pay a check already issued.

Source by Eze Ezenwa

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