A person (or company) who writes a check is known as a "Drawer." The check gives the Drawer's bank permission to release the Drawer's money to whoever properly presents the check. If the Drawer's bank refuses to honor the check, then the Drawer may still owe the money. The person (or company) to whom money is owed must contact the Drawer to demand payment. This demand letter must precisely identify the check, including the amount, bank, check number, and the person to whom money is still owed. The letter must also mention any service charge imposed for bad checks. The letter should also say how the debt must be paid, because a check is probably not acceptable. If the Drawer has an account with the person to whom money is owed, then the letter should also say whether the amount of the debt has been added to the account. |