Lloyds TSB pay out cheque before issue date!

morphette

Wrote a cheque from my lloyds tsb bank account to a company with the date 25th March 2011 for £54. This account is only ever used for payments as I transfer funds from my other non lloyds tsb account and then use the money for debit card payments and cheques etc...do this as was wiped out once when debit card was fraudulently stolen so now I dont ever use my current account(coop bank) debit card but rather I set up the lloyds one for just this purpose so there is only ever the amount needed fro debit card use or cheques.

However I noticed today on online banking for lloyds tsb that this amount is showing as gone out of the account....now am annoyed as cheque said 25th march and today is the 23rd March....also I never transfer money into this account to cover the cheques until their actual drawn date ie 23rd....so now I will have to transfer money into this account before 25th as Lloyds will charge me no doubt for not having sufficient funds tomorrow when another cheque goes out!!

Its annoying - I thought and was lead to believe you could not present a cheque into your account until the date on the cheque also it would then take 3 to 5 working days to clear depending on banks etc...so I cant understand why it has cleared out of my account today already and presented today...Can anyone help me please!!!

I will call Lloyds about this as not best pleased!!

Tupperware_Queen

I'm sorry but you are in the wrong, you are not supposed to write postdated cheques.

Tupperware_Queen

can I post date a cheque ?

see this link

lazer

I could be wrong, but I don't think you are actually allowed to post date a cheque - its in the terms and conditions of most accounts.

noh

See section 8.5d on page 11 of your T+Cs

http://www.lloydstsb.com/media/lloydstsb2004/pdfs/personal_banking_terms_and_conditions2.pdf

"You may not ask us to pay a cheque later than when we receive it by writing a future date on it. We will not be liable
if we pay the cheque before that future date. You can instead use Telephone Banking or Internet Banking to tell us to
make a payment on a future date."

talana

Or rather if you do write a post-dated cheque, then you're basically relying on the goodwill/memory of the recipient not to present it early.
If they do for whatever reason, then as you've found it'll likely get paid.

Tupperware_Queen

From Lloyds terms and conditions

Cheque payments

(a) When we receive a cheque you have written we will take the money from your account on the same day. We typically
receive cheques within a few days of you writing them, but the exact timing depends on when the person you gave
the cheque to pays it into their account (which can be months later).
(b) It is your responsibility to make sure you have available funds in your account to cover any cheques you have written.
(c) You may be able to stop a cheque (apart from a guaranteed cheque) that has not yet been paid in by calling us with
details of the cheque number, amount and date, who it is payable to, and similar details for any replacement cheque.
We may charge for trying to stop the cheque, whether or not we succeed.
(d) You may not ask us to pay a cheque later than when we receive it by writing a future date on it. We will not be liable
if we pay the cheque before that future date. You can instead use Telephone Banking or Internet Banking to tell us to
make a payment on a future date.
(e) If someone asks you to replace a cheque (because, for example, he or she says it is lost or there is a problem with it),
it is your responsibility to ask for the old cheque back (and to destroy it), or to ask us to stop the old cheque, before
you write a new one. If you do not do this, there is a risk that both the old and replacement cheques will be paid from
your account.

(f) We may not accept a cheque for payment out of your account if it is more than six months old.

Tupperware_Queen

oops I was beaten to it! slow internet connection!!!

Alpine_Star

Was the payee's bank right to accept a post dated cheque?

chambta

Alpine_Star wrote: »

Was the payee's bank right to accept a post dated cheque?

They would not even have to look at the date.

Tupperware_Queen

Alpine_Star wrote: »

Was the payee's bank right to accept a post dated cheque?

Lloyds terms and conditions:-

Cheque payments

(a) When we receive a cheque you have written we will take the money from your account on the same day. We typically
receive cheques within a few days of you writing them, but the exact timing depends on when the person you gave
the cheque to pays it into their account (which can be months later).
(b) It is your responsibility to make sure you have available funds in your account to cover any cheques you have written.
(c) You may be able to stop a cheque (apart from a guaranteed cheque) that has not yet been paid in by calling us with
details of the cheque number, amount and date, who it is payable to, and similar details for any replacement cheque.
We may charge for trying to stop the cheque, whether or not we succeed.
(d) You may not ask us to pay a cheque later than when we receive it by writing a future date on it. We will not be liable
if we pay the cheque before that future date. You can instead use Telephone Banking or Internet Banking to tell us to
make a payment on a future date.
(e) If someone asks you to replace a cheque (because, for example, he or she says it is lost or there is a problem with it),
it is your responsibility to ask for the old cheque back (and to destroy it), or to ask us to stop the old cheque, before
you write a new one. If you do not do this, there is a risk that both the old and replacement cheques will be paid from
your account.

(f) We may not accept a cheque for payment out of your account if it is more than six months old.


and from the Cheque & Credit Clearing Company advice

Can I post-date a cheque?

Banks set their own policies on post-dated cheques and, in many cases, their account
terms and conditions state that customers should not write them. If the beneficiary of a
post-dated cheque attempts to pay it in to their account prior to the date shown, it may
be returned unpaid,possibly incurring charges for both parties, if the terms and
conditions of the account state that cheques should not be post-dated.Or it may be
cleared and paid,potentially creating problems for the customer who wrote it.Post-dated
cheques are not covered by the UK Domestic Cheque Guarantee Card Scheme and

could be returned unpaid.

So basically the banks are well within their rights to process the cheque as soon as it is presented for payment, and there is no redress for the OP.

Sorry OP