Bounced cheques

DaveO

Hi everyone,

I am trying to find out from Nationwide how long after a cheque is deposited that the issuer of the cheque can cancel it.

I have had an email off them that refers to the table available on their web site that shows when funds become available after a cheque is deposited depending on what day you deposit it. This is either four or five business days depending on what sort of FlexAccount you have.

However, this comes with a caveat that although Nationwide make the funds available to you on the day specified, Nationwide will take the funds back after that date if the cheque is cancelled by the issuer or "bounced".

I can't get anything out of them so far as to when it becomes impossible for the issuer to cancel the cheque.

Does anyone have a definitive time frame when it should not be possible for someone who writes a cheque to cancel it?

Thanks,

Dave

---lee---

The only way you can be certain that a cheque is cleared is to talk to the bank and ask them to tell you explicitly when the funds have cleared. You should expect the full process to take around 7 days. Although a cheque can appear to have cleared after a few days, the bank can still remove the funds if it bounces.

Also if for example a cheque is stolen or fraudulent, it can be reversed many months down the line.

If it's a special cheque like a bankers draft etc, other rules apply - again you need to talk to the bank.

oldwiring

I'd suggest that a paying bank can accept 'orders not to pay' a cheque from the drawer of a cheque until the time limit for its return to the collecting (a.k.a. the payee's ) bank is expired. If I recall (those more u.t.d. please verify or correct) this is someting like 4 working days after the cheuw being paid in at the payee's account holding branch. If pay in is at anothe rbranch or some BSs the time may be extended.

Gordon_the_Moron

I believe the post above is true, unless the cheque is guaranteed in which case it cannot be stopped.

calleyw

Unless things have changed in the last year or so

Banks have never guaranteed payment by cheque or bankers drafts.

So if the cheque/bankers draft turns out to fraudulent then the money can be re-claimed years later.

http://news.bbc.co.uk/1/hi/programmes/moneybox/3727888.stm

http://news.bbc.co.uk/1/hi/programmes/moneybox/3709908.stm

Sorry can't help any more than that.


Yours


Calley

Gordon_the_Moron

If the cheque is fraudulent they obviously are not obliged to pay it, but if you write a cheque for your own account in a shop and guarantee it with your card, so long as it is under your guarantee limit they have to honour it.

calleyw

Gordon_the_Moron wrote:

If the cheque is fraudulent they obviously are not obliged to pay it, but if you write a cheque for your own account in a shop and guarantee it with your card, so long as it is under your guarantee limit they have to honour it.

Even if you cancel it later then same day. They will still pay out.

They reckon by 2025 cheques will be long gone.

I don't use them very often but do understand why some people do so just in case they don't have the full funds in their accounts for the next day or two. I do know that you are not suppose to do it.

But then that is what a credit card is for.


Yours

Calley