A Bad Check Demand Letter is a crucial document used when a check (cheque) has been dishonored by a bank in Australia, typically due to insufficient funds or a stopped payment. This document serves as a formal written demand for payment and is an essential first step before initiating legal proceedings. It must comply with Australian federal and state legislation, including the Cheques Act 1986, Banking Act 1959, and relevant debt collection regulations. The letter should be used promptly after a check is dishonored and must include specific information such as check details, amount owed, payment terms, and consequences of non-payment. It's designed to establish a clear record of attempt to collect payment and can be used as evidence in subsequent legal proceedings if necessary.

1. Sender Details: Full name, address, and contact information of the person or business sending the demand letter

2. Recipient Details: Full name, address, and contact information of the check writer

3. Date: Current date of the letter

4. Subject Line: Clear indication that this is a demand letter regarding a dishonored check

5. Check Details: Specific information about the dishonored check including check number, date, amount, and bank details

6. Circumstances: Brief description of the transaction or circumstances under which the check was received

7. Bank Response: Details of when and how the check was dishonored by the bank

8. Legal Reference: Citation of relevant sections of the Cheques Act 1986 and other applicable laws

9. Demand Statement: Clear statement of the amount demanded, including any additional fees or charges

10. Payment Instructions: Specific instructions on how and when payment should be made

11. Consequences: Statement of potential legal action if payment is not received

12. Response Timeline: Clear deadline for response and payment

13. Signature Block: Formal closing, name, and signature of the sender