Natwest Cheque Problem - REALLY Infuriating

MPH80

I'm curious - given you didn't have your card - what ID did you go into the bank with?

Twister84

The clearing cycle is based on T+ 2 4 6 where T is "transaction day", or "the day that you paid the cheque in". A cheque is fully cleared by close of business on the 6th business day from the day that you've paid it in. Close of business is actually 5 o'clock I believe as the processing centre don't work to the 3.30pm deadline.

T+4 is when you can draw on those funds technically, but the cheque can still be returned unpaid. ie if it gets stopped for reasons unknown to the bank, the funds will just disappear from your account.


This is the reason why branches are reluctant to allow customers to withdraw funds against uncleared items. If you used the money, but the cheque got stopped or whatever, the money will leave your account, resulting in charges more than likely.

Olipro, you mentioned risk-management in one of your posts: Regarding that, if a customer did go overdrawn because of a bounced cheque, that customer may never pay it back to the bank. So I think the banks are just covering their own backs really.


All cheques have to go for processing without question - otherwise you wouldn't get paid. House cheques are the only cheques which will clear quickly. This is where the cheque being drawn on, the account being credited, and the branch where the cheque is paid in, are the same branch. In this circumstance a cheque will clear overnight.

Regarding "reliable origins of the cheque" - I don't see how the bank would determine if it was reliable or not? Even if it was a big company, the bank/cashier does not know your circumstances. The cheque could have been made in error, there may be a dispute and the cheque's been stopped - it may even be a fraudulent cheque! All in all, as much as I do feel your frustration, it is to protect the customer(s), and the bank. This is why you'll most likely to be asked to either withdraw the funds at the atm, or make an electronic transaction, because it is at your own risk, and technically, they can't stop you. (To be honest, they shouldn't be encouraging you either )

I do hope that explains it a bit more.



PS. Don't worry about the fax

Techhead_2

Twister84, I think that is a very good explanation.

cockneysean

MPH80 wrote: »

I'm curious - given you didn't have your card - what ID did you go into the bank with?

Sorry, I cant remember if I mentioned, I used my drivers license and that was it.

cockneysean

Twister84 wrote: »

The clearing cycle is based on T+ 2 4 6 where T is "transaction day", or "the day that you paid the cheque in". A cheque is fully cleared by close of business on the 6th business day from the day that you've paid it in. Close of business is actually 5 o'clock I believe as the processing centre don't work to the 3.30pm deadline.

T+4 is when you can draw on those funds technically, but the cheque can still be returned unpaid. ie if it gets stopped for reasons unknown to the bank, the funds will just disappear from your account.


This is the reason why branches are reluctant to allow customers to withdraw funds against uncleared items. If you used the money, but the cheque got stopped or whatever, the money will leave your account, resulting in charges more than likely.

Olipro, you mentioned risk-management in one of your posts: Regarding that, if a customer did go overdrawn because of a bounced cheque, that customer may never pay it back to the bank. So I think the banks are just covering their own backs really.


All cheques have to go for processing without question - otherwise you wouldn't get paid. House cheques are the only cheques which will clear quickly. This is where the cheque being drawn on, the account being credited, and the branch where the cheque is paid in, are the same branch. In this circumstance a cheque will clear overnight.

Regarding "reliable origins of the cheque" - I don't see how the bank would determine if it was reliable or not? Even if it was a big company, the bank/cashier does not know your circumstances. The cheque could have been made in error, there may be a dispute and the cheque's been stopped - it may even be a fraudulent cheque! All in all, as much as I do feel your frustration, it is to protect the customer(s), and the bank. This is why you'll most likely to be asked to either withdraw the funds at the atm, or make an electronic transaction, because it is at your own risk, and technically, they can't stop you. (To be honest, they shouldn't be encouraging you either )

I do hope that explains it a bit more.



PS. Don't worry about the fax

Twister,

Thank you for your very detailed explanation. I fully appreciate the points that you mae, but the thing is here is that they even told me that I could make transfers online for any amount up to the available balance, which is how it shows in the image. This is a step account only, and every other time I have paid a cheque in I have always been able to withdraw against it as soon as the funds show in the "AVAILABLE" column in my online banking image. I was also told that had I had a card available to use I could have withdrew cash from the cash machine to the ATM limit and/or make purchases in shops with the chip and pin function. It is very infuriating when you are told this but then on the other hand the teller is telling you the she ain't givin you any of your own dough! Cheques have always taaken different times to clear in my account and are never consistent.
A couple of years ago I paid a cheque in for £7k and never had a single problem taking out £3,500 two woring days after deposit, which is when this particular cheque became available.

I was wondering if this refusing withdrawals against available funds if they consist of cheques that are not all the way through the 2-4-6 cycle is something that has been been recently implemented as a quiet rule sent out in the weekly staff memo or magazine or whatever because I was told the same in every branch that I went to, that I could not withdraw against the cheque as even though it was available it was not "fully clear". They said that they were not happy as cashiers to let me withdraw against it even though I could do what I said above, make transactions invoked only by myself and any previous occasions where I have drawn against cheques not fully cleared would have been at staff discretion and that discretion was not eing exercised this time!!

But anyway, today, I went into the branch and withdrew the entire £4,910 pounds successfully!

All very strange to me, and as I said above I definitely think this is some new rule been brought in through the back dor by NatWest. It seems fairly new, so who knows, somebody else may make a thread or they may find there one googling for information on their situation.

agrinnall

One other comment, if you couldn't get the money on Saturday then you won't be able to get it on Monday either, although time has passed the status of the cheque won't have changed. The clearing process only works Monday - Friday (overnight) so it'll be the same on Saturday, Sunday and Monday (and Tuesday if it's a Monday Bank Holiday).

iblametheparents

cockneysean wrote: »

A couple of years ago I paid a cheque in for £7k and never had a single problem taking out £3,500 two woring days after deposit, which is when this particular cheque became available.

That may have been a house cheque.