Stopping cheques: Is there any way...

bsmithb

...to tell whether a cheque has been stopped, WITHOUT trying to pay it into an account?

My situation: A supplier has decided we need to give them a post-dated cheque which they will cash in the event that we damage their stuff. If we give it back safe they promise to tear up the cheque.

We are not best happy because
(a) they've decided this new policy retrospectively after they were already paid in full.
(b) post-dated cheques are well understood to be a dodgy idea at this point (I think the banks just ignore the date marked? Certainly they reserve the right to ignore it).

However, we can't afford to antagonise them...

hence my idea: Give them a pre-cancelled cheque. They won't know the difference. Or will they? So that's my question. Do they have any way to tell whether it's cancelled?

AnonymousForObviousReason

The whole situation sounds dodgy, walk away find someone else. You obviously have concerns, follow your gut.

McKneff

as far as I know, post dated cheques are illegal now.

They dont mean a thing anyway, you could easily pay it in and chances are that the clerk wouldnt even notice the wrong date.

AnonymousForObviousReason

McKneff wrote: »

as far as I know, post dated cheques are illegal now.

They dont mean a thing anyway, you could easily pay it in and chances are that the clerk wouldnt even notice the wrong date.

Post dating cheques is not illegal. They may be against terms and conditions of a bank but that is not illegal. All it means is the bank will most likely ignore the cheque date, cash it and you have no recourse to the bank.

BUT that is a good get out, they can't ask you to break your banks T&C in a contract.

stclair

http://www.chequeandcredit.co.uk/faqs/-/page/can_i_post-date_a_cheque/

bsmithb

I doubt I would face any penalty for writing a post-dated cheque, but yes I don't think they mean a thing... thanks stclair for that link.

Thing is, we actually need this supplier. It's too late to go elsewhere. So, I am tempted to send them the pre-cancelled cheque as I said. They won't know the difference unless we get into a dispute with them and they try to cash it.

That is, I'm *pretty sure* they wouldn't know the difference. I do wonder whether they could phone up my bank (NatWest) and ask whether the cheque is actually valid... but... is there any chance NatWest would respond to a query like that?

stclair

No a third party would not be able to call the bank to ask if the cheque was vailid.

AnonymousForObviousReason

Not actually how it relates to this situation but I know you can't write a cheque when you know the funds aren't available. Obviously this isn't the same. Just worth considering.

Mikeyorks

bsmithb wrote:

That is, I'm *pretty sure* they wouldn't know the difference

There's no external method for your supplier to know the cheque is cancelled. The 'Stop' list is held on your Bank systems and only triggered when the electronic image of the cheque is presented on the type of file used in cheque clearing.

I've used 'special presentation' to check out a suspicious cheque in the past. But that's only a back door method of getting early advice if a cheque will be met when presented .... and locking up the funds if it will. But it doesn't apply in your case - as you can't withdraw the cheque once you've started the process.

themull1

why are you dealing with cheques and not your credit card?

bsmithb

Thanks guys for your quick and helpful advice - it's much appreciated!

themull1 wrote: »

why are you dealing with cheques and not your credit card?

It's a good point, it strikes me it'd be better all around on a card.

The supplier can 'reserve' a charge on the card without actually charging it (I forget the correct term for that...) And then they'd have assurance that they'd get paid if required, and I'd have recourse if I disputed it. Better all around.

I guess they just don't like cards because of the transaction charges. Not that cheque handling is free either, on most business accounts.