1. The function of this letter is to inform a debtor that the bank returned his/her check because of inadequate funds. Tell the debtor in a firm and courteous tone that you have to recover the funds he/she owes you.
  2. Inform your customer that the bank returned the check he/she used for payment. Do mention the check number and the exact amount.
  3. Ask the reader to pay immediately through any other method, such as money order or cashier's check. Also, mention the amount of penalty he/she has to pay.
  4. End by thanking the customer for his/her cooperation in rectifying the problem.


[Senders Name]
[Address line]
[State, ZIP Code]

[Letter Date]

[Recipients Name]
[Address line]
[State, ZIP Code]

[Subject: Normally bold, summarizes the intention of the letter] -Optional-

Dear [Recipients Name],

We were informed that the check #453 that you issued for $100 to pay for your installment plan was drawn on insufficient funds. We believe that this is just an oversight, and you have the chance of not paying the $15 fee for returned checks by paying in cash for your installment at our help desk between 8:00 AM to 5:00 PM on or before October 15. Thank you very much for doing business with us.


[Senders Name]
[Senders Title] -Optional-

[Enclosures: number] - Optional -
cc: [Name of copy recipient] - Optional -