A dishonored check is a check that cannot be processed or paid by the bank because there are insufficient funds in the account to cover the amount written on the check. When a person or business writes a check, they are essentially instructing their bank to transfer funds from their account to the person or business that the check is written to. However, if the account does not have enough money to cover the check, the bank will not honor the payment request and the check will be returned to the recipient as a dishonored or bounced check.
When a check is dishonored, the recipient may incur fees from their own bank and may also pursue legal action to recover the funds owed to them. Additionally, the person who wrote the check may also face penalties and fees from their own bank, as well as potential legal consequences. Dishonored checks can have negative consequences for both the person who wrote the check and the recipient, often leading to financial and legal complications.
Explain dishonoured cheque
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