Cheque Clearing Time Problem

LuckyPunter_2

I wonder if anyone can help with clarification about the delay in the clearing of a cheque I received recently?

Having won some money at a large bookmaking chain (William Hill plc) they paid me with a cheque issued on their Nat West account for UKP 410,264.50p (on a side note I had asked for some of it in cash but they insisted on all of it being paid via cheque and I believe they were wrong to do so on this point as I am entitled to have it all paid in cash should I so have wished as cheques as far as I know are not considered to be legal tender).

I then paid this cheque into my HSBC bank account on Wednesday 8 September 2010 via a branch in St Albans, Herts at around 1-30pm.

The cashier at the time informed me that the cheque should clear on Thursday 16 September 2010 at close of business (T+6) after which I could withdraw the money without fear of the cheque subsequently bouncing.

On going to my own branch of HSBC in High Barnet on Friday 17 September I was both shocked and distressed to discover that no money had been credited to my account and as such I could not withdraw it. The manager at my branch informed me that the cheque had not bounced but also that it was not credited to me and that I had to return to the branch in which I had paid the cheque (St Albans) to find out more.

On returning to St Albans the branch staff informed me that the they (HSBC) had to obtain clearance from Nat West to be able to put the cheque through the clearance system. They added that Nat West were delayed in coming back to them with authorisation until mid week 13th September.

They also stated that the cheque had now been processed and was in the clearing system (17 Sept). They also stated that the cheque will be available to withdraw on Monday 27 September subject to it clearing correctly ie not returned by the issuing bank. However I have still to see anything appear on my account as being currently pending or any reference to this money whatsoever which is normally what happens prior to final clearance.

Currently I am awaiting to see what will happen next Monday but would like to know if I am entitled to some financial compensation as from my understanding since November 2007 banks signed up to a system known as 2+4+6 of which you are no doubt aware. I would also like to know if they are entitled to delay the payment of this cheque for a full 19 days (assuming that I do actually get it next Monday 27 Sept) particularly as banking codes and conduct along with their written terms and conditions suggest that the cheque should clear on Transaction day plus six working days (T+6).

It just seems blatantly unfair that either HSBC and/or Nat West can effectively steal or deny me this money for such an extended period of time and that I should suffer financial loss by not being able to get interest on this money for so long.

Any assistance or comments anyone may have regarding the legalities of this delayed cheque clearance would be appreciated.

In this case no cheque has been lost or misplaced or bounced and it has quite possibly being delayed by the original company that issued it (William Hill) as for whatever reason they don’t like paying out winnings to a lucky punter such as myself.

Azrael_1701

It was probably delayed because it was such a large amount and they had to comply with anti-money laundering. In this case it can take as long as it takes unfortunately.

LuckyPunter_2

Azrael_1701 wrote: »

It was probably delayed because it was such a large amount and they had to comply with anti-money laundering. In this case it can take as long as it takes unfortunately.

Thanks for the prompt response.

Is it possible for you to give me an indication of what "As ling as it takes" means and what a reasonable or typical length of time would be?

samwsmith1

At least they haven't frozen your account!
When I pad in a cheque for £3000 at HSBC they froze my account for around a week over the may bank holiday because they suspected fraud - even though this was an NS&I cheque which wouldn't bounce!
As the OP says you will just have to wait till it's fully cleared.

Azrael_1701

LuckyPunter wrote: »

Thanks for the prompt response.

Is it possible for you to give me an indication of what "As ling as it takes" means and what a reasonable or typical length of time would be?

Your welcome.

If it was reported to SOCA, which if there was money-laundering suspicion, it would have been. The bank would then need direct authority from SOCA to proceed. SOCA have 7 working days to respond to the bank, if they respond but say to wait, they have another 31 calendar days to reach a full decision.

Oh yeah, and feel free to PM me if you have any specific questions

opinions4u

samwsmith1 wrote: »

When I pad in a cheque for £3000 at HSBC they froze my account for around a week over the may bank holiday because they suspected fraud - even though this was an NS&I cheque which wouldn't bounce!

NS&I cheques / warrants can and do bounce if they are fraudulent.

samwsmith1

opinions4u wrote: »

NS&I cheques / warrants can and do bounce if they are fraudulent.

But when It specifically says on it bond nos and name and address of customer they could have easily contacted them to check, or asked me to fax them the counterfoil to check the details were correct.