Short answer
If a customer paid with a cheque that the bank did not honor for a reason attributable to the drawer (insufficient funds, closed account), the holder can sue in an executory commercial lawsuit and claim, in addition to the face amount, compensation that can never be less than 20% of the cheque's value (Ley General de Títulos y Operaciones de Crédito, LGTOC, art. 193). Timing is decisive: present the cheque on time, keep the bank's notation, and sue within six months.
When must the cheque be presented?
A cheque is always payable at sight (LGTOC art. 178). Article 181 sets the presentment periods:
- 15 calendar days after its date, if payable in the same place where it was issued.
- One month, if issued and payable in different places within Mexico.
- Three months, if issued abroad and payable in Mexico, or issued in Mexico and payable abroad (unless the law of the place of presentment sets another period).
Late presentment does not always kill the claim against the drawer, but it opens defenses (art. 191). Deposit cheques as soon as possible.
Do I need a formal protest?
A cheque presented on time and not paid must be protested no later than the second business day after the presentment period (art. 190). In practice, the bank's own notation on the cheque stating that it was presented on time and not paid has the same effect as a protest, as does the clearing house certification. Keep the original cheque with that notation: it is your key evidence. The holder must also notify all signatories (endorsers, guarantors) of the non-payment.
How much can be claimed?
Beyond the face amount, article 193 provides that the drawer of a cheque presented on time and unpaid for a cause attributable to the drawer must compensate damages, and that the compensation shall in no case be less than 20% of the cheque's value. Interest and expenses can also be claimed under the rules article 196 makes applicable to cheques (arts. 151-156). If the bank refused payment without cause while the drawer had funds, the bank owes the drawer the same minimum 20% (art. 184).
Which court procedure applies, and how long do I have?
Negotiable instruments carry enforcement (Commerce Code art. 1391, section IV), so the holder can file an executory commercial lawsuit: the judge orders a demand for payment and, failing payment, the attachment of assets (arts. 1392 and 1394). The debtor has eight days to pay or raise defenses (art. 1396), limited for instruments to those listed in LGTOC art. 8.
The window is short: actions on an unpaid cheque prescribe in six months, counted for the last holder from the end of the presentment period (LGTOC art. 192). That is far shorter than the three years for a pagaré.
| Step | Deadline | Source |
|---|---|---|
| Present the cheque (same place) | 15 calendar days from its date | LGTOC 181 |
| Protest or bank notation | By the 2nd business day after presentment period | LGTOC 190 |
| Sue on the cheque | 6 months from end of presentment period | LGTOC 192 |
Documents and common mistakes
- The original cheque, with nothing written on it, and the bank's non-payment notation.
- The invoice, delivery note or contract explaining why the cheque was given.
- Correspondence with the drawer and the drawer's legal name and address.
- Do not return the cheque in exchange for a verbal promise; sign a written settlement first.
- Do not let six months pass negotiating.
Frequently asked questions
Can I still claim the 20% if the customer pays later?
The 20% compensates damages. If the customer offers to pay, agree in writing on the total amount, including accessories, before returning the cheque.
Is a post-dated cheque valid?
A cheque is always payable at sight. If it is presented before the date written on it, it is payable on the day of presentment (LGTOC art. 178).
What if more than six months have passed?
The cheque action may be time-barred, but an action based on the underlying sale or service may still be available. Have the file reviewed.
Can I sue an endorser?
Yes, if the cheque was presented and protested on time. Otherwise, recourse actions against endorsers and guarantors lapse (LGTOC art. 191).
Is a bad cheque also a crime?
It can have criminal consequences in some cases, depending on the applicable criminal law and the facts. This guide covers the commercial collection route only.
Related: promissory note enforcement · statute of limitations · all guides · versión en español