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Number of NSF Presentments Allowed

by John Burnett, BOL Guru
Guru Bio

Question:  How many times can a check be presented for payment after it is sent back NSF? I thought it was a total of three, but is that extended if the check is turned over to a collection agency?

Answer:  There is no legal limit on the number of presentments. There are a couple of rules, but they don't address presentment. One of those rules limits the number of times the Federal Reserve System will allow a check to be handled as a cash item through the Federal Reserve. That limit is two times. The National Automated Clearing House Association's ACH rules limit the number of times that an RCK entry may be used to collect on a bounced check. If the check has been returned once in paper or image form, an RCK can be used and resubmitted once if the RCK entry is returned. If the paper or image item has already been returned twice, the RCK may only be used once and if the paper or image item has been presented and dishonored three or more times, the RCK may not be used at all. None of those requirements prevent the use of other methods to present the check for payment. That could include other clearing houses (although they may also have limits) or direct presentment (bringing or sending the item directly to the bank to demand payment).

First published on 5/26/08

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