Cheques due to go to the bank but no money to cover them

jintynetty

I am really worried sick. I have a £200 overdraft, which I live out of. My account is never in the black. Anyway at Christmas things were extremely tight and I foolishly used a place that cashes personal cheques for one month and doesn't bank them for a month. I couldn't afford to pay them all in January so I cashed more cheques to pay the interest on the ones I already had (7 in total for £100 each). I applied for a new cheque book so that I could just pay one cheque per month, the company insists that I write new cheques per month. My cheque book hasn't arrived and now the cheques are due to be banked. I asked the company if they could just use the original cheques for another month but they have said they cant and now they will all be banked. What will happen? I'm scared I will be arrested for writing cheques with no money in my account. Any advice will be gratefully received. I haven't slept for all the worry.

duchy

Can your bank issue you a temporary cheque book-I vaguely remember having one eons ago which wasn't personalized but still valid. The branch had a small stock of what were essentially books of a few blank cheques kept at the branch.
Also I seem to recall that a cheque doesn't need to be a format cheque to be valid -and people have done daft things like present cheques written on an elephant etc in the past. So a "hand written" cheque might just be valid. I'd ask the bank for advice.

Could maybe extend your overdraft ? Or even though I'm loathe to suggest it and only as an absolute last resort -get a loan -even if it's an evil provident loan ?

missindecisive

you won't be 'arrested' for writing cheques from your bank with no funds to cover them- the cheques will just bounce and the bank will charge you for returning them

jintynetty

Thank god for that! Will this apply even when I've used my Cheque Guarantee Card? I used to be quite good with money but now there just never seems to be enough! I think I will end up giving the bank back my card and just get an ordinary bank card, at least that way I can't get myself into any more trouble!

Billy_two_speakers

jintynetty wrote: »

Thank god for that! Will this apply even when I've used my Cheque Guarantee Card? I used to be quite good with money but now there just never seems to be enough! I think I will end up giving the bank back my card and just get an ordinary bank card, at least that way I can't get myself into any more trouble!

Get ready for a shock you might find you bank card no longer is a Guarantee Card they have been taking off card for ages new cards dont have it

read here
http://www.ukpayments.org.uk/media_centre/press_releases/-/page/719/

sharpy2010

Billy_two_speakers wrote: »

Get ready for a shock you might find you bank card no longer is a Guarantee Card they have been taking off card for ages new cards dont have it

read here
http://www.ukpayments.org.uk/media_centre/press_releases/-/page/719/

And even if it IS a guarantee card, you might find they'll come round your house and confiscate it!

beanielou

Have you thought about joining a credit union?
Could yopu open a new basic bank account tomorrow?

rising_from_the_ashes

I know that it's best not to get into more debt but I'm wondering if it might be best to speak to your bank and see if you can increase your OD and then reduce it by the £100/month.

You would need to check with them but I suspect this would be cheaper than keeping extending the payday loans.

PNPSUKNET

It is actually fraudulent, if cheques are either in on a closed account or no funds.

jintynetty

Thanks to everyone for your help. I actually went to the bank (I broke down in tears because I felt really stupid!) anyway the bank couldn't have been nicer and have increased my overdraft. I have agreed to pay them back at £50 per month! What a relief I can actually sleep at night! Thanks again for everyone who gave me advice!

YORKSHIRELASS

Glad you have got it sorted, you definitely did the right thing being honest with the bank. I remember my bank once telling me that it is fraudulent to spend money on cheques or cards knowing you dont have enough in your account to cover it.

I agree that you are unlikely to be arrested but for anyone else in the same position you need to be aware of this.