Cheques - question about validity and obligations

Mike_Handscomb

Hi
October 2008 - I have found a cheque dated October 2006 from old employer in an old diary, probably lost track of as I am busy and moved into a new year and new diary! I called the old employer and was told the cheque was still outstanding so it should in thoery be paid on presentation.
I banked the cheque at my bank on 28-10-2008, but it was stopped on 29-10-2008 by my ex-empoyers bank and set straight back to my bank. My understanding after reading some posts on this site is that the cheque is valid for 6 years and should only be stopped if the drawer issues a stop order to their bank.
I feel strongly about this and like the little man getting pushed around. It is my hard earned money and I would like to persue this and make a difference if I can.
Can anyone please tell me what the actual legal obligations and powers are in this case for the banks and my old employer in this case please ?
Thanks to all in anticipation.....!
Mike

timnicebutdim_2

Hi, this is from the APACS website:

Is it true that cheques are only valid for six months?
It is common banking practice to reject cheques that are over six months old to protect the payer, on the basis that payment may already have been made by some other means or the cheque may have been lost or stolen. However, this is at the discretion of individual banks. It should not be assumed that cheques in excess of six months old would automatically be rejected — the only certain way to cancel a cheque is to request that a stop be placed on it (although cheques backed by a Cheque Guarantee Card cannot be stopped). It is recommended that, if possible, customers in possession of cheques that are over six months old obtain a replacement. A cheque remains legally valid for six years.

Extant

Obviously not that hard earned or important if you can leave it in a diary for two years.

Anyway, as quoted above, although a cheque remains legally valid for six years, it is the bank's discretion as to whether or not they pay it past the standard six months.

Some banks will seek to "re-authorize" the cheque with the drawer, some will just refuse. I'd suggest getting a replacement.