Bank lost cheque I paid in - has cleared other persons account

pstubbs50

I am speechless and hope that someone here can give me some advice on what to do.

I run a business, and I paid in two cheques from clients on the 16th Feb (using two separate paying in slips).

One of them has cleared and the other one hasn't. I phoned the bank and I was told that it had obviously been lost in the system and I should go back to the client and ask them to stop the cheque and reissue it.

I wasn't happy with this, but after speaking to Customer Services and my branch business manager it was obvious that there was a complete lack of interest. I was getting nowhere, so I said I would contact my client.

It turns out that the cheque has cleared my client's account two days after I paid it in.

I phoned my bank again thinking that would be enough for them to resolve it. Again, they told me that they could do nothing as they have millions of accounts and would be unlikely to be able to trace where the cheque has been credited. Basically they are telling me to go back to the client again and ask them to ask their bank to trace it.

I feel powerless - the bank is totally at fault and just don't seem to be concerned in the slightest. Surely it is now their responsibility to trace it and resolve the issue?

Hopefully someone here can gove me some advice about what to do.

Thanks very much!
Patrick

Mikeyorks

pstubbs50 wrote: »

Hopefully someone here can gove me some advice about what to do.

As they advise, I'm afraid.

It sounds as though the cheque has gone through their front end unprocessed (possibly piggy backed on another cheque). But then been processed in central Clearing.

Your Bank will almost certainly have an open discrepancy for the value of that cheque (but there may be others .. which will distort the individual figure) ..... but they have no image of it and no audit trail .... so can't trace.

If you get a copy of the cheque (they should be able to do that if you get them Sort Code / Account / date of process / value) they will be able (the reverse has the process audit trail) to then do an adjustment back to your account.

pstubbs50

Thanks Mike. Still sounds poor to me that even though they have stamped my paying in book they are unwilling to look into it.

So how do I get a copy of the cheque if it has gone missing in the system? I assume I have to ask my client to get the copy from their bank. Am I right in thinking that you are saying my clients bank will make the adjustment to my account?

Thanks!

Mikeyorks

Yes ... you would need to ask your client for a copy. As I said ..... there's an audit trail on the back that should help untangle the problem.

As regards the credit ...... as the drawer bank is oblivious there is a problem (all looks OK at their end) I don't think there is anything they can do (they would act if the cheque had been processed in the wrong value). I think the credit will need to be drawn down by your Bank ..... they have a specialist team working on the surprising number of problems that occur in Clearing.

It happens ..... don't take it personally, even though it is an irritant. And ...... no, I don't work in Banking.

pstubbs50

Thanks v much for that - I'll go back to the client and see how it goes from there!
Cheers

Mikeyorks

You're welcome. Trust it resolves painlessly.

fooboo

Was it a handwritten paying in slip or one from a pre-printed book - if it was handwritten and theres a number that hasn't been read properly most banks process the cheque to a suspense account and so it would have debited your client...

If its HSBC, they have a system that lets them search (in branch) for eg, cheque paid in on whatever date, for whatever amount, in whichever branch and they get a list of items that match those criteria, and can view the cheques and where they've gone.

I'm afraid if its any other bank as far as I know its got to be done the other way around with your clients bank telling you where its gone.

Just more reasons to avoid cheques! :P

Good luck hunting!

jwakers

do you know the name of the said HSBC system? i'm not getting very far at all with chasing my cheque deposited in such a branch

fooboo

Well perhaps "system" wasn't a good choice of word, as it is, along with almost everything, in the main banking system. Just depends whether the person you spoke to has the privilege/training to use it. Ideally if its a larger branch you want the senior cashier to look at it for you...