Does anyone work or have worked for a bank?

MrsTinks

I had a money conversation with a friend the other day and the topic ended up on cheques... (yes my life is SO interesting!)
Basically I know and told them that the life of a cheque as it were is 6 months - then you need to get it re-issued. To my wonder they said they had a couple of times paid in cheques over 6 month old and had them honoured...

So my question is - is that true? Is there a minimum amount it would apply to? Does it depend on the bank you pay into or the issuing bank?

It's really just a retorical question but one that might be interesting... forexample if people have written a cheque and it takes 7 months for someone to cash it it could cause a number of issues - especially if they thought the 6 month thing was set in stone. Yes I know the debt if it was a debt would remain but they could have moved banks etc... so just quite curious really

Horace

I thought that the life of a cheque was 3 months and not 6 - I have no idea where I got that snippet of information from though.

Welshdebtor

6 or 7 years legally I believe,(though some banks state in their T+C's they will not cash ones over 6 months.

Would post a link but I can't as a new member lol

planning_ahead_2

I used to work for HSBC (and before that when they were Midland Bank). We were told that cheques are valid for six years - but banks usually return them if they dated are over six months prior to the date of presentation. We used to mark them refer to drawer in order that they should be sent back to the person issuing them to re-date them (cross out date and write new date and initial change).

However, I have no idea why banks reject cheques older than six months if they are valid for six years. Seems a bit contrary to me. I only worked there and did what I was told:rotfl:

MrsTinks

Interesting...

Welshdebtor

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.

planning_ahead_2

Welshdebtor wrote: »

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.

That was probably the bit where my eyes glazed over and my mind wandered off to a nicer place in the training session back when I was 18 and just joining the bank:rotfl: I definitely knew that they were valid for six years, but we were to return them if they were dated more than six months before being presented to us - so I must have woken up to hear that bit of the training session:)

MrsTinks

OK I just cheatede - I called Lloyds (I have a business account there sort of... ) and asked them
Now... and this is Lloyds Business Banking saying this - not me... there USED to be an understanding amongst the banks that anything over 6 months etc but it no longer applies. Present them and as long as the cheque hasn't been cancelled they will honour them. Any that have been cancelled will be returned etc etc.

I can't say if this is what will happen certainly but it'll be interesting if anyone can verify it

and the lesson being - to be sure... cancel any cheques not cashed after say 6 months

Tixy

Interesting subject. Last week I found a 2005 dated cheque fora whole £6odd! maybe I'll try banking it and see what happens.

kalaika

MrsTine wrote: »

... there USED to be an understanding amongst the banks that anything over 6 months etc but it no longer applies...

This is my understanding as well. A couple of years ago I was banking some cheques in Natwest that were approaching six months old (I had mislaid them for a while in a house move). The cashier and I were having a laugh about me losing them during the move but she told me that they had lifted their six month rule anyway, so had it taken longer than six months for me to find them the bank would have still cashed them.

MrsTinks

I'd certainly be interested in finding out what happens Tixy

I know years ago I found an old cheque that I thought I'd long since have to have written the money off for - it was about 5 and a bit years old (ex held on to my mail for a while - never knew it was there...) and I wrote to the company asking them to re-issue it which they grudgingly did (I pointed out that the money was still owed and it was less than 6 years old... - I was very new to MSE at the time and it was my first personal victory )
Now I have no idea if a cheque THAT old would be honoured (doubt it!) but maybe small ones only JUST over the 6 months would be? Although the gist of what Lloyds told me was that if it's not cancelled they should honour it...
*makes note to go through her old cheque books to make sure any cheques have been cashed and if not to cancel them!*