You can use the letter below to contact people or organizations who have not deposited their checks. The text can be copied and pasted into your letter. Consult your attorney for advice on whether it meets local laws and due-diligence requirements. You can update the information in the brackets (“[“, “]”) according to your needs.
Sample Outstanding Check Notification
[Today’s Date]
[Payee Address]
Dear [Payee],
According to our records, we have issued you a check more than 60 day ago. The check is still outstanding. Below are the details of this payment:
[Payment Date]
[Check Number]
[Payment Amount]
Please note that we voide any outstanding checks 90 days after the date of issue. If we don’t receive your response before [Deadline], state law may also require us to turn over these funds to the State of [State name] as unclaimed money.
Please deposit the check immediately if you have it. Please verify the following information and send us this letter as soon as you can if the check is lost or destroyed.
Please send a new payment check for the amount referred to above. I will not negotiate this check. I will immediately return the check to [Company name] if I find it. I certify that the funds are mine.
Signed,
___________________________
[Payee Name]
Date: _______________
If you have any questions, please call us on [Phone number].
Sincerely,
[Company Representative]
[Company Address]
Important Information
You cannot keep money if checks are not cashed. The recipient (or his or her heirs) is entitled to receive the funds if they were entitled. If funds are not claimed, they may be given to the state as a safekeeping account (known by escheatment), until they can be claimed.
Check with your state regulators and the industry to confirm what requirements apply to you. It may be necessary to include specific language or adhere to other rules relating to unclaimed property. Checks to vendors and checks for payroll may be different.
It’s not necessary to follow the exact format. Some organizations use a separate request form that allows the recipient to request a reissue of an old-dated check. You may also want to give the recipient the option to not reissue the check if they have a valid reason for not submitting the check.
Keep good records. Reconcile your bank account regularly and track payments that are not cashed.
You can create more problems by simply holding the money, whether you do it intentionally or not.
