Bounced USD cheque (Nationwide)

alanhart

Hi,

I received a cheque in USD from a company.
My wife went into nationwide to pay this (and other cheques) into my account for me.

The numpty at Nationwide put it through as 109.94 GBP sterling instead of USD 109.94.

I have since received a letter from nationwide informing me of this (their) error:...

"The attached cheque that was credited to your account has been returned by the bank on which it was drawn. The reason for return is "Non-Clearing item". This is because the cheque was credited as Sterling rather than Dollars.

The balance on your account has been reduced by this amount and I enclose a copy of the cheque for your information. The drawing bank have not returned the original cheque in this instance.

We would advise that you return to the drawer of the cheque to obtain a replacement. I enclose a Foreign Cheque negotiation form for you to complete and take with the replacement cheque to your branch. This will ensure it is correctly and promptly processed."

... I called Nationwide head office, stating the situation,
at first the woman informed me that "I don't think we accept Dollar cheques" ... she checked and said they didn't.
I then said, that the letter from them had a "foreign currency negotiation form" sent with it and she replied " oh if it's foreign currency then it will incur a charge of £6.50 to process it" but that i would still need to obtain a replacement cheque.

I have been in contact with the company that issued the cheque and have been told that i will incur a $20 charge for cancellation and re-issue of the cheque.

I guess my main question is: can i claim this $20 charge back from Nationwide as, after all, it was their error that the cheque was processed as GBP and not USD?

Thanks

Alan

knowlton

I would argue, yes, you can - escalate it with their manager as it is clearly not right that you should have to pay for their error.

alanhart

I have asked the company to issue me a letter with the cheque stating that i have incurred a $20 charge so i have some evidence to present to the manager at nationwide.

Anyone else think i have a strong argument? I think i may adopt an "i'm not leaving until i get what i want" approach. (hopefully it wont come to that tho ($20.00 is only about £12.50) if anything it's just the principle of it all really.

Dave101t

you get a receipt with cheque deposits.
also i love 'my wife' took the cheque, nice cover!:)

alanhart

Dave101t wrote: »

you get a receipt with cheque deposits.
also i love 'my wife' took the cheque, nice cover!:)

She cashed in a couple of other cheques (GBP) and didn't check the receipt. You'd think a bank teller would know the difference between USD and GBP, right? the cheque actually has the words "dollars" and "cents" written on it as well as saying USD right next to the numerical amount!

I think I may recommend re-training their staff on foreign currency.

Biggles

It might well come down to how clearly you (or your wife!) entered it on the paying-in slip.

It's always wise to point out that it's USD to the cashier at the time, otherwise they'd have no reason to do anything other than just add up the numbers, esp if it was with other cheques.

alanhart

Nationwide don't use paying in slips, you simply hand the cheques over the counter, they process them and give a receipt with images of the cheque on it.

glider3560

alanhart wrote: »

Nationwide don't use paying in slips, you simply hand the cheques over the counter, they process them and give a receipt with images of the cheque on it.

If you get an image of the cheque, then it would have been paid in at the ATM. The ATM probably can't tell the difference between the written words and should not be used to deposit foreign currency cheques.

Auntie-Dolly

It's not usual to be able to pay a $ cheque directly into your UK account - you should have asked. The cashier wouldn't have any idea it wasn't in sterling unless you told her.

alanhart

glider3560 wrote: »

If you get an image of the cheque, then it would have been paid in at the ATM. The ATM probably can't tell the difference between the written words and should not be used to deposit foreign currency cheques.

It was definately paid in over the counter, the cashier also gives a receipt with the cheque images on. I have paid in many cheques this way before.

MarkyMarkD

So, doesn't the issue boil down to "my wife paid in a pile of cheques with a USD cheque hidden amongst a load of GBP ones; she didn't tell the cashier one was in dollars; the cashier didn't notice and therefore it's Nationwide's fault".

A bit harsh on the cashier and Nationwide. As others have said, she should have paid in the GBP cheques and then told the cashier she had a foreign currency cheque to pay in separately.