Why can a cheque be dishonoured?
There are a number of reasons why a cheque you write or deposit may be dishonoured, such as: • there are insufficient available funds in the drawer’s account to cover the cheque; • the cheque is not signed, the signature is not valid or more than one signature is required; • the cheque is stale (this means the cheque is presented for payment more than 15 months after the date written on it); • the cheque is post-dated (this means the cheque is presented for payment before the date that is written on it); • information on the cheque has been materially altered without the alterations being properly signed or initialled by the person who wrote the cheque; the cheque has been stopped; • the paying bank has been notified of the mental incapacity, bankruptcy or death of the person who wrote the cheque.
