Returned Check Reason 21: Understand the Situation

One of the most unpleasant situations is when you get a returned check. But when you receive it back, you receive a code. Among these is the most common, the returned check Reason 21.

In which situation is the check returned for reason 21?

In basically two situations:

1. When you try to cash a check, but the person who issued it has stopped it, that is, canceled the compensation amount
   1. This is common when the issuer does not have the money and, to avoid having their name tarnished, suspends the transaction.
2. When the check is revoked.
   1. Very common in cases of theft and loss.

But there are solutions for all cases! Now, see what to do in this situation.

What to Do When You Have One Check Returned for Reason 21?

If you had a check returned for reason 21, check out the options you have to regularize the situation:

1. Go to the bank: go to the bank in person and pick up the check that was returned by paragraph 21.
2. Contact the check issuer: Now, the next step is to contact the check issuer and request payment regularization. Explain the situation and try to negotiate a new payment deadline.
3. Try renegotiating: If the issuer is unable to pay the check immediately, try renegotiating the debt. This process may involve paying the amount in installments or exchanging the check for another debt instrument.
4. Protest the check: If negotiation attempts fail, you can protest the check at a notary's office. This can be a way to pressure the issuer to pay the debt. To protest a check, simply present it at a notary's office within 30 days of the return.
5. Execute judicially: If protesting doesn't resolve the situation, the last option is to resort to judicial enforcement. To do this, you'll need to hire a lawyer and file a lawsuit against the check issuer. The judicial enforcement process can be time-consuming and may generate additional costs.

Remember that a check returned for reason 21 is a delicate situation and can cause concern. It's important to act quickly and seek guidance from a specialized professional to help resolve the situation.

Below, we've compiled some other questions you may have about checks returned for reason 21. Check them out:

What does Returned Check Paragraph 21 mean?

It means that the check was returned because it was stopped or revoked.

Can This Type of Check Be Protested?

Yes!

It is possible to protest a returned check for reason 21. To do so, the check beneficiary must present the document for protest at a notary's office within 30 days of the return. 

Protesting a check can be a good way to pressure the issuer to regularize the payment.

In this situation, can I execute the check?

Yes!

It is possible to enforce a check returned for reason 21. To do so, it is necessary to file a lawsuit against the check issuer. 

It is important to note that the judicial enforcement process can take time and it may be necessary to hire a lawyer.

Can I Deposit?

No…

Unfortunately, it is not possible to deposit a check returned for reason 21. When a check is returned, it becomes invalid and can no longer be used for payment.

If the beneficiary has questions about the reason for the refund, it is important to contact the bank for more information.

And Resubmit?

Yes! You can resubmit a check returned for reason 21. 

However, it's important to remember that resubmission is only permitted once and within 30 days of the return date. If the check is returned again, it will no longer be possible to resubmit it.

Can I deny a returned check for reason 21?

No. Checks stopped due to commercial disagreements cannot be considered negative. This only happens in the case of bounced checks. 

Is it possible for the bank to refuse to stop a check?

No. The reason for stopping a check and the reason for doing so is not the responsibility of the bank, but of the person who issued the check. 

What are the reasons why a check bounces?

There are several reasons why a check bounces. Each line (code) has a meaning:

• Bad check: which includes reasons 11, 12, 13 and 14.
• Payment impediment: 20 to 28, 30 and 70.
• Irregular check: 31, 33, 34 and 35.
• Improper presentation: 37 to 45, 48 and 49.
• Improper issuance: 59, 60, 61 and 64.

A check returned for reason 21 can raise a number of questions and concerns. It's important to know what to do in this situation to regularize the payment and avoid further problems. 

If you have any questions or difficulties dealing with a check returned for reason 21, it is recommended to seek help from a specialized professional.

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