A bounced cheque is seen as an acknowledgement of debt instrument, so I would guess that there is definite legal argument that this would be the case.
A bounced cheque is seen as an acknowledgement of debt instrument, so I would guess that there is definite legal argument that this would be the case.
Section 4(5) of the NCA reads:
If a person sells any goods or services and accepts, as full payment for those goods or services-
(a) a cheque or similar instrument upon which payment is subsequently refused for any reason; or
(b) ... basically a credit card payment
the resulting debt owed to the seller by the issuer of that cheque or charge does not constitute a credit agreement for any purpose of this Act.
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