Cheque Guarantee Scheme.

hollister_2

Hey everyone,

I was just wondering if anyone knew exactly how the cheque guarantee scheme works when it comes to personal accounts. If I recieve a cheque from someone and it has their card number and expiry date on the back of the cheque and the value is either equal or less than their guarantee limit does that mean the funds are guaranteed to me? Also does the guarantee scheme apply to personal cheques between personal customers or does it only apply when its a personal cheque to a business?

Thanks

zppp

hollister wrote: »

Hey everyone,

I was just wondering if anyone knew exactly how the cheque guarantee scheme works when it comes to personal accounts. If I recieve a cheque from someone and it has their card number and expiry date on the back of the cheque and the value is either equal or less than their guarantee limit does that mean the funds are guaranteed to me? Also does the guarantee scheme apply to personal cheques between personal customers or does it only apply when its a personal cheque to a business?

Thanks

The cheque guarantee scheme works as follows;

• The payee writes the card number on the back of the cheque if a personal cheque (if a shop they will do it for fraud checking) and it guarantees the value of the cheque up to the limit on the card.
• The cheque is guaranteed unless fraudulent/stolen.
• Only one cheque can be guaranteed per card per day under the scheme rules.

Hope this answers your queries. Oh, and if you are not already aware, cheque guarantee will be finisheing in approx a year's time.

hollister_2

zppp wrote: »

The cheque guarantee scheme works as follows;

• The payee writes the card number on the back of the cheque if a personal cheque (if a shop they will do it for fraud checking) and it guarantees the value of the cheque up to the limit on the card.
• The cheque is guaranteed unless fraudulent/stolen.
• Only one cheque can be guaranteed per card per day under the scheme rules.

Hope this answers your queries. Oh, and if you are not already aware, cheque guarantee will be finisheing in approx a year's time.

So does that mean if the person has already written a cheque and guaranteed it that day then the one that has been given to me will be invalid?

EarthBoy

zppp wrote: »

• Only one cheque can be guaranteed per card per day under the scheme rules.

Er, no. Only one cheque can be guaranteed per transaction, not one cheque per day. E.g. if you want to buy something for £150 and your cheque guarantee limit is only £100, you can't get round it by writing two cheques. I've seen people do this in shops, but it is against the rules of the scheme and invalidates the guarantee.

But you can write several cheques per day in different shops, or to different people, and use the card to guarantee each one.

noh

The rules are here:-
http://www.apacs.web-manager.co.uk/spot_and_stop/documents/UK_Domestic_Cheque.pdf

zppp

noh wrote: »

The rules are here:-
http://www.apacs.web-manager.co.uk/spot_and_stop/documents/UK_Domestic_Cheque.pdf

Sorry to do this, but quote from link;

'The number of guaranteed cheque encashments, when made with the support of a cheque card, is limited to one cheque per customer per day'

noh

zppp wrote: »

Sorry to do this, but quote from link;

'The number of guaranteed cheque encashments, when made with the support of a cheque card, is limited to one cheque per customer per day'

That is for encashments. ie you write a cheque and exchange it for cash at a branch of a bank. Thats what the calendar in the back of the book is for.

You can make any number of purchases per day as long as only one cheque is used per transaction

zppp

noh wrote: »

That is for encasments. ie you write a cheque and exchange it for cash at a branch of a bank. Thats what the calendar in
the back of the book is for.

You can make any number of purchases per day as long as only one cheque is used per transaction

Ahh! That does make sense now actually. Always wondered what the calendar was for! :T

So to clarify for the OP, as long as it is you don't cash against cheques then there are no limits to the number of cheques one can guarantee.

DizzleUK

EarthBoy wrote: »

Er, no. Only one cheque can be guaranteed per transaction, not one cheque per day. E.g. if you want to buy something for £150 and your cheque guarantee limit is only £100, you can't get round it by writing two cheques. I've seen people do this in shops, but it is against the rules of the scheme and invalidates the guarantee.

But you can write several cheques per day in different shops, or to different people, and use the card to guarantee each one.

Yes, my brother did just that around 8-9 years ago. Got given a chequebook and £100 guarantee card and by the end of the day he'd used the whole book and run up about £2000 of debt.

Roll on a decade(ish) later and he's still just as irresponsible with money, owes my parents around £3000 (which I silently hate him for- my parents know of my disdain of bailing him out time after time, but it's unconstructive to let him know exactly what I think of him) and owes around £12000 to various financial institutions.

Mark_In_Hampshire

hollister wrote: »

So does that mean if the person has already written a cheque and guaranteed it that day then the one that has been given to me will be invalid?

This has been answered. However one subtlety:

The payer does not write the number on the back of the cheque.

The cheque has to be signed in front of the payee and it is the payee (receiver) who writes the number on the back.

The bank can refuse to honour the cheque if they suspect that has not been followed. Very unlikely these days perhaps, but the handwriting being identical on the back and the front can be cause to invalidate the guarantee.