The Bad Check Demand Letter is a critical document used in Malaysian business and legal practice when a check has been dishonored due to insufficient funds, account closure, or other reasons. This document serves as the first formal step in the debt recovery process, typically issued after a check has been returned by the bank but before initiating legal proceedings. It must comply with Malaysian banking regulations and the Bills of Exchange Act 1949, containing specific details about the dishonored check, clear payment demands, and potential consequences of non-payment. The letter is designed to establish a formal record of the demand for payment while providing the check issuer with a final opportunity to settle the matter before legal action is taken. It's particularly important in Malaysian jurisdiction as it can later serve as evidence in court proceedings and demonstrates the payee's attempt to resolve the matter amicably.

1. Sender's Information: Full name, address, and contact details of the person or entity making the demand

2. Date: Current date of the letter

3. Recipient's Information: Full name, address, and contact details of the check issuer

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

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

6. Incident Description: Clear description of when and how the check was dishonored

7. Legal Basis: Reference to relevant sections of Malaysian Bills of Exchange Act 1949 and other applicable laws

8. Demand Statement: Clear statement of demand for payment, including the exact amount and any additional bank charges

9. Payment Terms: Specific deadline for payment and acceptable payment methods

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

11. Closing: Formal closing statement, signature block, and sender's signature