Stopping cheques: Is there any way...

Mikeyorks

It's a 'pre-authorisation'? But only lasts for a very limited period - so is a bit useless for the situation you describe?

bsmithb

Mikeyorks wrote: »

It's a 'pre-authorisation'? But only lasts for a very limited period - so is a bit useless for the situation you describe?

Ah - I didn't know that :-)
Anyway, thanks again.

chexum

stclair wrote: »

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

I found this page on the same site explaining more about the background:
http://www.chequeandcredit.co.uk/faqs/-/page/is_this_a_recent_development_has_the_law_changed/
"So if someone wanted to phase their payments, such as for paying into an insurance policy, they issued a series of post-dated cheques to the beneficiary and because this was the accepted way, the beneficiary had a system for making sure that the cheques were not paid in before the intended date."

Given that, there is certainly nothing dodgy about writing a "post-dated" cheque - the date is mostly an advice to the payee, and either bank may check it occasionally, but they are not obliged to.

I find this use of the concept is quite clever (though probably far from being novel), and it's not that different from using a card when the T&Cs state they can charge it for additional fees whenever they feel like it.

Or rather, it's different for the better, because you know the terms, know when, and what can they charge. If they'd "lose" the cheques, we could report them lost for free, and any error is the bank's fault. Could even be better than the DD system we have now:p

The only issue is whether you can trust the supplier to give them this cheque, but they have to trust you with the stuff they supply, and that you give them two valid cheques anyway.

If my trust is an issue, I would not play the game with them at all.

Mikeyorks

chexum wrote: »

I find this use of the concept is quite clever (though probably far from being novel),

HMRC, for example, used to ask for a series of PD cheques from customers paying 'arrears' ...... as it was a more certain guarantee than 'voluntary' monthly payments. But technology has changed and automated systems are now in use for opening post :-

http://www.opex.com/prod_payment.php?pid=40

- which means that operators no longer have the ability to check dates etc on cheques ..... as the machines remove them from the envelopes and stack them for the image processing stage. Hence PD cheques are now only accepted 'if accompanied by a letter'. The letter does nothing except fatten out the envelope and makes sure it doesn't go through the automated opener but to a more manual one :-

http://www.opex.com/prod_extract.php?pid=35

........ where the machine unzips the envelope but the operator does check the date on the cheque as they remove them manually from the opened / pouched envelope. And, hopefully, pulls it out of the day's work if it's future dated!

But paying by DD is so much safer if you've arranged to pay any business on a future date.

AnonymousForObviousReason

I would seriously consider a different method. Perhaps a solicitor to hold the money? Costs money but you're not relying on trust of a stranger.