IHTM31901 - Assessing: dealing with cheques: dishonoured cheques

If a payment is dishonoured, either because

• there were insufficient funds or
• the cheque was stopped,

Cashiers, Cumbernauld will inform you of the fact using form Cas 10. The cancelled cheque will be attached and you should file the form and cheque once you have dealt with them.

If a cheque is dishonoured for any other reason, Cashiers will automatically re-present it for payment.

The form Cas 10 will give you details of the original entry on the accounting record. Cashiers will automatically cancel the payment on the accounting system. If you look at the transactions on the system at a later stage, you will find separate entries for the original payment and the cancellation.

When you receive the form Cas 10, you should raise the matter of the dishonoured payment with the liable person or their agents immediately. You should consider referring the matter to Debt Management and Banking for protective action if there is any delay in putting the matter right.