Why can a check be rejected and in what cases does it happen?

There are times when a check can be rejected for not meeting certain requirements or in very special situations. In the following note you will be able to know in detail what are the cases in which you will not be able to collect money with this commercial document that constitutes an important alternative to cash and cards.

The regulations in force in Peru register a series of situations in which the bank cannot pay for this document and even lists the sanctions to which those who issue a bottomless check, that is, one that you cannot back with the money in your account.

Why can a check be rejected?

These are the cases in which a check may be rejected, in accordance with the provisions of Law No. 27287, Securities Law:

• When there are no funds available, unless you decide to overdraw the account.
• When the check with the naked eye is scratched, adulterated, erased or forged.
• When the check has been revoked after the 30-day period for presentation.
• When the suspension of payment has been communicated (theft, loss).
• If you enter the ‘non-transferable’ clause and a different person tries to collect it; or if it is to order and the holder’s right is not legitimized with a regular series of endorsements.
• If the person who charges is not identified.
• If the check is deferred, before the date established for its collection.

What happens if a bank improperly pays a check?

The bank is responsible for improperly paying a check in the following situations, according to the Lima Chamber of Commerce (CCL):

• When at first glance, the issuer’s signature is forged.
• If the check does not meet the requirements established by law.
• In all cases where the checks should not be cleared by the bank.

What are the consequences of writing a bad check?

a bounced checkthat is, one that is issued when there is not enough money in the account to support the amount on it, constitutes a crime of improper release once it has been protested.

Before reporting said offense, the obligor must be required – preferably by notarial letter – and give him a period of three days to pay the check. The crime of improper release is reported to the Prosecutor’s Office and its sentence is five years.

The bank is obliged to close current accounts by money transfer bad checks in the following cases, according to Law No. 27287:

• When in six months two checks have been protested without total or partial funds.
• When in a year the bank rejects ten times the payment of one or more checks due to lack of total or partial funds.
• When the criminal judge informs the bank of the opening of the process for the crime of improper release.
• When a current account holder is included in the list of closed current accounts that is published monthly in the Official Gazette El Peruano.
• Other events that by legal provision lead to the closing of the checking account.