# Good wording for bounced checks in a contract.



## NYCB (Sep 20, 2010)

Trying to get geared up for a new season I realized my contract has no stipulations for a bounced check.

Luckily it hasn't happened to me yet, but no point in not preparing for it. I would assume, for the sake of it being a pain the ass, that it is ok to charge a percentage or daily for a returned check until it is fixed.

How do some of you guys have it worded?


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## Randy Bush (Mar 7, 2011)

Have never really had a bounced check for the kind of jobs I do, they are large enough that it would a criminal charge is they are not good. And thankfully never have had someone try and beat me out of money. I never take post dated checks neither.


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## NYCB (Sep 20, 2010)

If it were to happen to me it would be on a deposit check most likely, and wouldn't really affect work flow.

But I do frequently get one day repair jobs that are just large enough to warrant a contract.

Then get a check the same day for between $600-1000 depending on help and material costs.


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## thom (Nov 3, 2006)

Only happened to me once, on a $15,000 check, about 25 years ago. I called and he started with the BS, I gave him 3 hours to pay, and live. I had my money within 3 hours.


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## CrpntrFrk (Oct 25, 2008)

5-10% fee of the check amount will be charged due to insufficient funds on all returned checks. In the event of a returned check final payment will be due immediately plus fees in the form of cash only.


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## Chris Johnson (Apr 19, 2007)

My contract reads $250.00 service charge plus any bank charge. People complain about the high amount...my response - you plan on bouncing a check? When they say no, I ask who cares what amount I put...so far I haven't seen a bounced check


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## Cole82 (Nov 22, 2008)

After you bounce one check with me I only take cash not another check. I have only had one problem and the customer felt terrible. They forgot to transfer funds over to the checking from saving. As soon as I called and told them this he said meet me at the bank I will have cash sure enough $7,600 in cash. Right in the parking lot of the bank.

Cole


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## BamBamm5144 (Jul 12, 2008)

Chris Johnson said:


> My contract reads $250.00 service charge plus any bank charge. People complain about the high amount...my response - you plan on bouncing a check? When they say no, I ask who cares what amount I put...so far I haven't seen a bounced check


Lol. That's funny. I had one person ask me why I charge such high interest if not paid within 7 days. Pretty much told him the same thing you say.


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## concretemasonry (Dec 1, 2006)

Bam Bamm -

The bank charges the check writer the penalty in one way or another.

It is not an interest rate, but it is penalty and fee that can allow you to cause stop of work legally because you have not been paid. Then, he can go out and try to find another contractor that will accept "rubber" checks that bounce, but you do not know until it is too late due the float and technology.


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## BamBamm5144 (Jul 12, 2008)

concretemasonry said:


> Bam Bamm -
> 
> The bank charges the check writer the penalty in one way or another.
> 
> It is not an interest rate, but it is penalty and fee that can allow you to cause stop of work legally because you have not been paid. then he can go out and try to find another contractor that will accept "rubber" checks that bounce., but you do not know until it is too late due the float and technology.


I totally understand but I was referring to my regular payment terms.


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## NYCB (Sep 20, 2010)

BamBamm5144 said:


> Lol. That's funny. I had one person ask me why I charge such high interest if not paid within 7 days. Pretty much told him the same thing you say.


If anyone asked me that I would probably stare blankly at them for a period of time until it sunk in just how stupid they sounded. :laughing:


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## Framer53 (Feb 23, 2008)

In NY you are allowed to charge an additional $30 above the face value of the bounced check as a fee. This was changed a few years ago when it was only $20.

you don't need to reference it in your contract or so said my lawyer. of course, I don't use a contract anymore......:whistling


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## BrandConst (May 9, 2011)

Mine basically states that if payment isnt made on a particular milestone than work will cease (the day the check bounces in this case), secondly, it also states, any all efforts or costs, including administrative fees we encounter collecting a debt will be billed accordingly to the customer. I havent encountered this problem before but sure I will after reading this post!


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