Have you ever try to bank in the cheque but it bounced? In this situation, there’s a high possibility the current account holder issue the dishonoured cheque. So, what could you do?
Normally, a dishonoured cheque is a cheque that the bank returns for the following reasons:
i) There are insufficient funds in the sender’s account
ii) A cheque is issued on an account, which had been closed for certain reasons
According to our Malaysia’s law, a current account holder will be blacklisted after committing 3 times of dishonoured cheque using the same account over 1 year period.
Fees & Charges of Dishonoured Cheque
If the current account holder accidentally issued a cheque without sufficient fund, then he/she need to pay cheque return charges of RM100.
How If the Issuer Write the Wrong Name or Figures to Drawee?
In my opinion, bank also reserves the right to dishonour any cheque has technical errors include that the cheque showing inconsistency between the words and figures or with wrong handwriting. In the other words, if the issuer writes down wrong recipient name and amount on the cheque, i don’t think bank will slap you with penalty fees.