No Goods Received Nationwide will not Cancel my Cheque

teamanp

Nationwide will not cancel my cheque?

Can anyone help me understand why the Nationwide will not cancel my cheque?
On August 30th 2010 I purcased a 3 & 2 Seater sofas from a company called Exclusive Leather Sofas of Cannock for £698 after I saw their advert for sale. The salesperson asked for a cash deposit which I duly obliged with £50 and she told me I had to pay the balance by 3rd September or the sale would fall through, on the 2nd Spetember I went into my local Nationwide BS the Bilston branch and asked them for a cheque for £648. I took the cheque over the same day and gave the salesperson the outstanding balance on the sofas.
On the 8th September we read on the front of our local newspaper the Express & Star that the company had ceased trading on 3rd September and was being mobbed by angry customers.
On the 9th September we went to Nationwide BS to see if my cheque had been cashed it had been cashed so we asked if they could not cancel the cheque as it was a corparate cheque and also the cheque had not been lost or stolen they could not and would not cancel my cheque, I still cannot understand it ?? We have not receieved any good from Exclusive Leather Sofas so in effect it has been stolen?
I phone head Office spoke to the local branch manageress but no help at all, I tried Citizens Advice, Consumer Direct although they did tell me to write to the Nationwide requesting a confirmation letter stating that they have refused to cancel the cheque?
We went into another Nationwide BS on 13th September and found out the cheque had still not been cashed.
We understand the company Exclusive Leather Sofas is being wound up on 20th September and a administrator being appointed.
Can anyone help or advsie or tell us if we have lost our money? What makes it worse is the fact the cheque has still not been cashed and the Nationwide BS will not cancel the cheque?

regards
Marilyn

marblecake

Was it definitely a cheque drawn on your own account and not a bank draft? That could make a difference when you are trying to cancel it.

marblecake

Oops. Sorry, I see Nationwide don't do bank drafts but do something called a counter draft or Building Society Cheque. Was is one of those?

teamanp

Hello All It was a Building Society cheque so I guess we have lost the £698 I will just have to put it down to experience but an expensive mistake for doing nothing wrong and ordering a sofa. The shop as been on the paper and TV Central news with many customers taken in. I still cannot understand Nationwide not helping me though.

neilmcl

So you want Nationwide to cover the cost of your "expensive mistake".

garth549

Just to note I know very little about the laws of business, but I do know that it is illegal for a business to trade whilst insolvent. If they do the directors can be held liable for the debts of said company (even for a company with limited liability). I dont know at what point they become 'insolvent' or even if they are, someone with some legal knowledge might be able to clarify. But if they cash your cheque after becoming insolvent that could be illegal

RadoJo

Is it not the case that you would need to notify the receivers that you are one of the company's creditors? I am assuming that having gone into administration, all the company's bank accounts are frozen pending the allocation of whatever funds there may be to those owed money or goods. If the cheque has been cashed, Nationwide will not be able to get the money back from this company, so you are asking them to give you £648 of their money, and I can completely understand why they would not do this.

Hintza

teamanp wrote: »

I still cannot understand Nationwide not helping me though.

Because the cheque has been cashed and the money drawn from the appropriate account. So there is nothng they can do.

If you wanted protection you would have needed to use a crdit card unfortunately.

mynameisdave

Asking for cash and cheques sounds as if they knew they had troubles. Most companies, certainly ones trading goods at those prices, would accept credit cards. To specifically request payment in those forms sounds very dishonest to me. Proving it is anotehr matter.

kazzah60

Can anyone help or advsie or tell us if we have lost our money? What makes it worse is the fact the cheque has still not been cashed and the Nationwide BS will not cancel the cheque?

Surely IF the cheque has NOT been cashed as the OP states - then Nationwide should cancel the cheque and return the money to the OP's account - otherwise Nationwide has benefitted to the tune of £698 - because they have taken the money from OP's account BUT have NOT paid the money to the retailer - sadly as a Nationwide customer myself, this does NOT surprise me,

I think you should make a formal complain to Nationwide head office and also write to the Daily Mail chap - he loves to try and help in situations like this

teamanp

The cheque as not been cashed by Exclusive Leather Sofas but on 20th September a receiver will be appointed even though i did not received the sofas i paid for i do not think i will get my cheque or cash back as the receiver will get all the cash and asset and distribute them to the main creditors firstly and then if we are lucky the smallers creditor (customers) I think this may be why the Nationwide will not cancel the cheque as it will be the property of the receiver to share out to the creditors. I would like to thank everyone for the help and advice given very comforting.