Cheque Garentee rules

PONDSAVER_2

I issed a cheque for some petrol and used my garentee card - the cheque was printed inthe machines they have with the card number on the back.

the cheque went through my back yesterday but I was short and this morning I noticed that they have returned it and charges me £25 for this.

I didn't think they coudl return garenteed cheques - where do i stand now withthe petrol station - I phone the bank andthey said they would look into it and have come back with this response

"Following our conversation this morning, i've checked with our Account Management Department and the reason the cheque was returned unpaid was due to the fact that it had been presented for payment more than 5 days after it was guaranteed.

Under cheque guarantee rules , if the cheque is presented for payment more than 5 days after the guarantee was issued then we can unpay if if there are insufficient funds available. "

I have never heard of this before has anyone else....

i don't know what to do now - any ideas anyone?

sammy115

never heard that reason before although my bank have returned guaranteed cheques in the past

PONDSAVER_2

how do i stand with the retailer then?

Bossyboots

Guaranteed cheques have to have the number put on the back by the payee and you can only use one cheque per transaction. Although most appear to get through even if these rules are not met, some do get rejected.

I wonder if the five day rule is something that retailers are aware of as a condition for them of accepting guaranteed cheques. I haven't heard of it before. Apart from the rules I have mentioned here, as far as I am aware they will pay guaranteed cheques even without funds and then look to the account holder for charges for going overdrawn and misusing their card.

Perhaps the banks are now taking a firmer line and leaving the account holder to clear up the mess, rather than just applying fees which they may subsequently find themselves being asked to return at a later date.

Emmzi

http://www.apacs.org.uk/payment_options/plastic_cards_7.html

"It is not possible to place a stop on a guaranteed cheque and once the bank receives the cheque, they will have to pay it."

The exception to this is cheque cashing services, where they have 3 days to present the cheque for payment.

If it was for petrol, the bank are havering. If it was for cash, they can refuse it.

myrnahaz

The banks change the rules to suit themselves - put it down to experience, or try appealing to their better nature and ask for your charges back but be prepared for the fact that they don't have a better nature. Nat West opened an account for my daughter at a school open night (she only wanted the free baseball cap) gave her a chequebook and guarantee card, didn't explain how it worked and then let her run up a debt of £1014 (despite her NEVER putting any money into the account) and then they arranged a high interest loan to cover the debt (she was still in school but was 18yrs old). They claimed that the card number she wrote on the back made the 'agreement to pay' binding, despite no cash ever being deposited into the account. I even took the case to the ombudsman but they said the bank had done nothing wrong and DD should have read the bank's Ts and Cs.

PONDSAVER_2

It was a majour supermarket petrol station where they put the cheques into a machine and it prints everything on there. How will they know how to contact me - If I go in there then they will not know what I am talking about and think I am crazy - should i ring head office or just wait and see if they contact me.

Emmzi

Their bank will represent the cheque. Your bank will pay it. They're just playing a game with each other.

You should check if the fee for a cheque presented against low funds and paid, is the same as the cheque returned fee. Watch they don't charge you both.

You might want to have a look at the bank recharges claim thread, too.

PONDSAVER_2

Yes thanks - I am going through that prosess at the moment managed to win against capital one so far after just sending the prelim letter. I opened this bank as a parachute one and am using it, whilst I claim from my previous bank as I have a feeling they may close my account down. Ho hum...

PONDSAVER_2

just had a conversation with my bank about this and if something is not fileld ouit properly by the people accepting the cheque then they can return the cheque. Even if you write a cheque and garentee it yourself onthe back it is not properly garenteed and it is liable to be returned. Don't know how they tell who wrote the number on the abck but there you go??

isgman

As Usual.. The Banks have you,, and your Money,,Doh...Banks...Can't live with them. Can't Live without them..