Foreign Cheque Exchange Rate error

psychospiller

I recently paid 2 foreign cheques (AUD) into my HBOS current account at my local branch, one was paid in first and I was given the correct exchange rate on that day, approx 1.86. The second cheque I paid in the following day and at the time the bank clerk said the rate was now 1.68. I could have said nothing at this point however as I had paid in a cheque the day before and I was aware of the approximate exchange rate that day, I decided to question the clerk and asked if she was sure the rate was correct. She said yes it was correct and even showed me the screen that she was working from (which did show 1.68) and assured me this was the correct rate. I found it hard to believe but because this would work out in my favour I said "well if you are sure" and accepted her word.

I received a letter 10 days later stating that the cheque I had paid in was "negotiated by the branch in (USD currency) however the correct currency is AUD" and that they be debiting my account by the difference.

Whilst everyone makes mistakes my point is that I drew their attention to the error immediately they gave me the rate but they continued to assure me this was correct and processed the cheque with this rate.

Do I have any comeback ? and does anyone know if HBOS have notified me in a timely enough manner of their mistake? Do they have the right to withdraw these funds without my consent? What If I had withdrawn the cash and spent it, would I now be in overdraft situation and facing charges?

Also the letter was written from the "HBOS Suspense Account Reconciliation Team, Payment Service Operations" however they suggest I contact my branch if I have any queries. If I should want to complain about this whom should I be writing to?

Thanks in advance.

Premier_2

psychospiller wrote: »

...Do they have the right to withdraw these funds without my consent? ...

No, ... but you probably consented to such terms when you opened your bank account.

psychospiller wrote: »

...What If I had withdrawn the cash and spent it, would I now be in overdraft situation and facing charges?

Yes

psychospiller wrote: »

... If I should want to complain about this whom should I be writing to?
...

Halifax complaints procedure

Bank of Scotland complaints procedure