Cheque returned .... 4 months later ????

ritac1

After checking my bank account online this morning I noticed that there was a £16.00 debit for a returned cheque.

When I queried this they came back to me saying it was a returned cheque which was banked on 7th July 2006. I have asked them for further information but I expect it will take a while.

Does anyone know why this would happen? I thought the whole point of having cheque clearance times is so that when we withdrew money after the clearance time it was safe? Obviously I am wrong.

gt94sss2

ritac1 wrote:

After checking my bank account online this morning I noticed that there was a £16.00 debit for a returned cheque.

When I queried this they came back to me saying it was a returned cheque which was banked on 7th July 2006. I have asked them for further information but I expect it will take a while.

Does anyone know why this would happen? I thought the whole point of having cheque clearance times is so that when we withdrew money after the clearance time it was safe? Obviously I am wrong.

There is currently no time limit and a cheque can be returned uncleared at any time.

However, from November 2007, all the banks have agreed not to 'unclear' a cheque after 6 days have passed.

Regards
Sunil

anniecave

can you remember who the payee was? Could they have asked their bank to recall it (but I didn't think this could be done normally anyway...)?

chairman_miaow

I was once told that banks wouldn't 100% guarantee a cheque paid in to your account has definitely cleared , due to the fact they get sent out in the normal post and could get delivered late etc. You just have to assume it has cleared...

ritac1

I am still waiting for the bank to come back to me with more information. I do know who the payee was and have contacted them by e-mail but have not yet received a response. It was for a Playstation Game I sold for my son but not surprisingly the buyer probably has gone missing !!!!

Definitely wont be accepting cheques any more for ebay sales.

I cant see the point in ever accepting a cheque if the bank can come back some 4 months later and say it has been returned.

I also cant see the point in having clearance times either.

Anybody working in a bank please feel free to enlighten me if I am missing something here.

ashm1

So how can you sell items on that auction site and be sure that you will get you're money ?

tom188

BACs transactions - dispatch when the amount has hit your account, or cash, then the ball is in your court and not the buyers.
I assume ashm1 is referring to arguments regarding Paypal taking the money you have been paid back.

Mikeyorks

It's most unusual to get a cheque back after the first few days have elapsed. The vast majority bounce as soon as they hit the drawers account.

Most of those that bounce later are for accounting problems in the Clearing cycle / company cheque with 2 signatures required / deceased etc.

For a low value individual drawer (assumed) cheque to bounce after 4 months indicates it's stolen / similar fraud

amandathepanda

The problem arises because returned cheques are sent through the postal system.That is why as cashiers that we have to tell customers that cheques are normally available for withdrawal on the 5th working day but we can never say 100% that a cheque is cleared. Cheques are normal paid/unpaid on the day that they reach the bank of the person that issued the cheque. If they don't have the funds or are returned for another reason they are sent back to the bank of the person who paid the cheque in. This particular cheque must have been lost in the postal system somewhere, so royal mail are to blame rather than the bank. Hope this helps.

Mikeyorks

amandathepanda wrote:

The problem arises because returned cheques are sent through the postal system.That is why as cashiers that we have to tell customers that cheques are normally available for withdrawal on the 5th working day but we can never say 100% that a cheque is cleared. Cheques are normal paid/unpaid on the day that they reach the bank of the person that issued the cheque. If they don't have the funds or are returned for another reason they are sent back to the bank of the person who paid the cheque in. This particular cheque must have been lost in the postal system somewhere, so royal mail are to blame rather than the bank. Hope this helps.

Hmmm ..... a lot are couriered back along the reverse routes that the cheques get into the Clearing houses in the first instance. Particularly for bulk cheque / centralised processors such as CC companys, BT / HMRC et al. Used to get 'ours' back via a direct service from the Clearing house.

And where they are posted via Royal Mail - unlikely to be a singleton cheque?

chairman_miaow

Even so , there's still the possibility that cheques could go astray and then be found and dealt with at a later date ?

ritac1 wrote:

I cant see the point in ever accepting a cheque if the bank can come back some 4 months later and say it has been returned.

Indeed....it's quite worrying really !