The guarantee check is a common check delivered as a guarantee of payment of a possible debt related to a good, product or service. Being a guarantee means that the deposit check can only be discounted if there is a disrespect to the commitment assumed by the person who issued it.
The deposit check is a common type of guarantee when renting properties or vehicles, for example, but it can also be used for other purposes.
Requesting a security check is a legal procedure. The legislation, however, provides an exception: hospitals cannot require a security check or any other guarantee to provide emergency care. The hospital that breaches this rule will be committing a crime.
How does the deposit check work?
If a consumer rents a car, the car rental company may require a security deposit. This deposit – which can be a check or the blocking of part of the limit on the credit card – is intended to reimburse the rental company in case of loss.
In the case of the check, it will be delivered by the consumer at the time of renting the vehicle. If the car is returned without any problem, the consumer can take the check back. However, if the lessee does not show up to deliver the vehicle or if he or she suffers an accident, for example, the company may deposit the check to compensate for the loss.
The same logic applies in the case of renting a property. In the real estate market, the presentation of a deposit check equivalent to three months’ rent is one of the methods used to minimize the loss in case of non-payment or damage to the property by the tenant.
Deposit check deposit
The company or the individual who received the check as a guarantee will only be able to deposit it in the situations provided for in the signed contract.
The bank, however, has no responsibility to check what was agreed between the parties that signed the contract. Therefore, if you receive a deposit check or withdrawal check, it will act as if it were a regular check and cash the money.
If the deposit check is presented improperly, the injured consumer may question this attitude in court. On the other hand, if the company that deposited the check is in your right, but the check is returned for lack of funds, it can protest it. In that case, the consumer will have a dirty name.
How to write a deposit check?
The deposit check must be completed like a regular check. However, some measures can increase the security of those who issue this type of check.
On the back of the check, write that it is a security check and, if possible, indicate under what circumstances it may be deposited. For example, in the case of renting a vehicle, indicate the day of delivery and the check should only be deposited if the car is not returned on that day.
The measure does not prevent the company from depositing the check before the agreed, but it avoids confusion with other checks. The existence of the message may also reinforce consumer protection should it need to go to court.
It is important that the check is nominal, preventing it from being deposited by a third party in the event of theft or theft. If you want to prevent the company from passing the check on to someone else, make a check payable out of cash.
Another point to keep in mind is the date. That’s because a check expires in six months, counting from the date indicated. In the case of a long-term commitment, such as a rental, the expiration date may prevent receipt of the check. In that case, an output can be left blank.
Deposit check receipt
Whenever you are required to leave a security check, the consumer must request a receipt. This document can prove, in case of need, that the other party kept the check, being responsible for its return when the deal is finalized.