Cheque Cleared - And Then Not ?

rebootz

Hi Everyone !

I hope someone can give me a little info on this, (wishful thinking methinks !) as I always thought I knew about cheques - but obviously not.

I sold a couple of things online recently and agreed with one guy that he could pay me by cheque.

Communications were all good, and I banked the cheque as soon as it arrived on the 5th December, knowing that they can take a few days to 'Clear'.

I use online banking with Natwest, and when I logged in on 9th December, there was the cheque, and it was affecting my available balance - which as far as I was concerned meant it had cleared. If it hadn't cleared,the funds wouldn't have been available, right?

So, I packaged up his items, and sent them off recorded delivery.

Shopping Wednesday 10th, I wanted the floor to open up and swallow me when my debit card was declined at the till. I rushed home, checked my online banking again, and it said "unpaid chq ......" etc etc and that amount of money had now been taken out of my account.

Ive tried to contact the buyer obvioulsy, but predictably his phone no longer works and there are no replies to any communications.

I've contacted customer services from the website where I sold the items, and the basic response was that I should have made him use their own electronic payment methods and that I could open a dispute but they could do nothing about getting back the money or the items.

I've contacted Natwest, as I was soooooo sure that surely, if they had actually deposited the funds into my account, then the cheque had cleared and that that money was mine. If they had not made the funds available - I would not have sent the items.

Natwest have just told me that the cheque did not bounce, the buyer cancelled the cheque on Monday 8th, the day before the funds were available in the account.

They also told me that it was my fault (obviously ! ) as even after the funds become available, whoever wrote the cheque has 6 days to reclaim the money, and that I shouldn't have tried to use it. Bearing in mind, that at the time, these funds were the only funds available in my account, I asked what would have happened if I had spent the money on the Tuesday, and was told that still, on Wednesday the money would have been taken back out and I would have been charged for having an unauthorised overdraft.

Surely this isn't right? Please someone tell me it isn't? If the funds are available in my account, doesn't that mean its cleared? Can I really have been completely swizzed like this? I would rather have burned the money than have it stolen ! And I know I should be more mad at the buyer - but I'm mad at the bank too, because I could have resold the items if he had just not paid for them - but now I'm left with neither !

Thanks For Letting Me Have A Rant - But Some Good Advice - ( Other Than Don't Accept Cheques lol ) Would Really Come In Useful Right Now

xxxxx

~Beanie~

You cannot be sure that a cheque has definately cleared until 6 working days after you deposited it, you only waited 2.

This is from NatWest's website:

When you pay a cheque into your account, we collect the payment from the bank of the person or business who wrote the cheque.
It usually takes three working days (including the day the cheque is paid in) for a cheque to be received at the other bank for payment. This is known as 'clearing a cheque'.
Cheques can be returned unpaid, so you should allow at least four full working days before you use money from a cheque you've paid in. In some cases, because cheques may still come back unpaid after this time, it may take up to five working days for a cheque to clear and postal delays can extend this period further.

The Bank, at its discretion, may sometimes allow access to uncleared funds. This may mean that your account might appear to be in credit but the balance may include uncleared funds. If your branch allows you to draw against these funds, then you may have to pay overdraft interest and fees.

dzug1

Unfortunately cheques CAN bounce after being cleared eg if later found to be stolen or forged. In the case of overseas cheques this can take months

I believe that time limits have recently been introduced on this (or it may just be a proposal to do so), but I suspect that even if they have you didn't leave it long enough.

Given that you know where he lives (or at least claims to live) it may be worth getting the police involved.

simax

APACS website states 6 clear days after clearance.

Go to the police as this is fraud/theft.

dantheman1

I have had exactly this happen to me too. I advertised a high value item and the buyer (it now seems) paid in a stolen cheque. NatWest cleared this in three days and I moved the money out into another account. He picked up the goods and has now vanished. The cheque was rejected the next day and all the bank say is that I should have waited five or six days. If that is the case how come the money was made available to me before the final clearance was confirmed. I complained to the ombudsman but he voted in support of the bank!! The account had a £900 overdraught limit but they allowed the ovedrawn value well over this. Absolutely speechless!!

omen666

Fraud without a doubt.

I assume it was a high value item like a Iphone or something similar?

I would report it online to your local old bill - Also requesta copy of the cheque from the bank


Just out of interest can you remember the sellers name?
ebay name if aplicable
email address too?
address?

What information do you have on the buyer?

zppp

dantheman1 wrote: »

I have had exactly this happen to me too. I advertised a high value item and the buyer (it now seems) paid in a stolen cheque. NatWest cleared this in three days and I moved the money out into another account. He picked up the goods and has now vanished. The cheque was rejected the next day and all the bank say is that I should have waited five or six days. If that is the case how come the money was made available to me before the final clearance was confirmed. I complained to the ombudsman but he voted in support of the bank!! The account had a £900 overdraught limit but they allowed the ovedrawn value well over this. Absolutely speechless!!

I suggest you read this information on the cheque clearing cycle.

http://www.chequeandcredit.co.uk/files/candc/flash_files/246._updated.swf

Mikeyorks

rebootz wrote: »

the buyer cancelled the cheque on Monday 8th, the day before the funds were available in the account.

That doesn't add up (apart from the fact the 8th was a Wednesday?).

You banked the cheque 5th Dec? That was a Sunday - so presumably via an ATM. Your Bank should have processed it on the Monday (6th) - it would have hit their clearing centre overnight and been into central Clearing by 1100hrs on the Tue (7th).

At that point it transmits as electronic data and would have hit the drawer's Bank for processing against their account overnight 7th / 8th. So - putting a stop on the cheque on the 8th would have been too late. The cheque would have been 'paid' by then.

It's a bit academic really - and I suspect the cheque was stopped as soon as it was sent. But the dates just don't compute. Sure this wasn't November .... when the dates then all tie in?

Comyface

Mikeyorks wrote: »

But the dates just don't compute. Sure this wasn't November .... when the dates then all tie in?

Old thread alert - 2008!

Mikeyorks

Comyface wrote: »

Old thread alert - 2008!

I don't believe it .......... I never fall for that! Bad night last night ...... my only excuse.

Thanks

p1nkk1tten

At fd, our scripting is.. 'A cheque takes 3 working days to go through the clearing system, on the 4th working day the funds will be available however a cheque can be returned up to the 8th working day, so if you do choose to use the funds, you do so at your own risk..'