Cheque credited for wrong amount. What happens?

squibbs25

I wonder if any one can help.
My sister went to the building society today to pay in a cheque.
When she got home she looked at the receipt and it shows more credited to the account than she paid in.
(she paid in £2000, but receipt shows £3000) no other transaction was made.
What will actually happen?

The person who made the cheque out to my sis is aware of the situation (sis told her), but as i say, we are all unsure of what happens. Do the BS stop the cheque? Do they credit the correct amount? Or do they credit the wrong amount leaving the person who wrote the cheque to sort it out?
If anyone can shed some info on this i would be everso grateful.

TIA

Squibbs.

PS i hope i have put this in the right section, if not please move to correct board.
Thanks

sgx.saint

Hi.

I am not a 100% sure on this one, but I would have thought that the cheque itself would over-rule the receipt.

Just because the Cashier says that £3000 was paid in, when it comes to actually clearing the cheque, which was written for £2000, the originating bank will only clear the cheque for the original written amount.

If that makes sense.

Although I could be wrong. Why not call the bank and explain what happened, they should be able to advise your further.

squibbs25

Thank you to both of you for your replies.

We were all worried as we didnt know what would happen.

Thanks again.

Squibbs

Sillychuckie

sgx.saint wrote:

Just because the Cashier says that £3000 was paid in, when it comes to actually clearing the cheque, which was written for £2000, the originating bank will only clear the cheque for the original written amount.

How does the originating bank know what was written on the cheque?
Are they actually sent the physical copy?

If I write a cheque and give it to someone, the bank im with knows nothing of the cheques (or how much was written on it) until the receiving bank requests the funds.
Unless the cheques get posted to the originating bank for verification (prior to fund release/clearing), how would they ever know?

If the bank u paid the money into double checks these things, they will spot the error there. If they don't however, I wouldn't assume the originating bank could stop it.
Having said all that, I'm not sure I really understand what happens to the physical cheque after it has been paid in.

Sillychuckie

sgx.saint wrote:

Just because the Cashier says that £3000 was paid in, when it comes to actually clearing the cheque, which was written for £2000, the originating bank will only clear the cheque for the original written amount.

How does the originating bank know what was written on the cheque?
Are they actually sent the physical copy?

If I write a cheque and give it to someone, the bank im with knows nothing of the cheques (or how much was written on it) until the receiving bank requests the funds.
Unless the cheques get posted to the originating bank for verification (prior to fund release/clearing), how would they ever know?

If the bank u paid the money into double checks these things, they will spot the error there. If they don't however, I wouldn't assume the originating bank could stop it.
Having said all that, I'm not sure I really understand enough about what happens to the physical cheque after it has been paid in to be sure.

Alfie_E

Sillychuckie wrote:

How does the originating bank know what was written on the cheque?
Are they actually sent the physical copy?

Yes. See Understanding the cheque clearing cycle.

sgx.saint

Yes, please read the website link posted by Alfie E for further clarification.

squibbs25

I read the link that was posted, but i think that only applys to cheques that are 'normal' (unless they bounce it!)
My query is that the cheque was for £2000, sis paid it to cashier who produced a computer slip for £3000.
To be honest, i'm still unsure of what will happen, although what Al Mac said makes sense. (IYSWIM)

Squibbs

sgx.saint

The cheque still has to be presented for clearing though, and at that point only £2000 will clear because that is what is written on the cheque and all that will be authorised by the paying bank.

Biggles

Not at all sure about that. The link says that Under the system of paying bank truncation being introduced from 1997 onwards (eh? how old is this?) the cheque is not returned to the paying branch but retained at some central point. In any event, it might depend on what amount is encoded on the cheque at the receiving branch, I don't know if that's done as the cheque is received over the counter or later on (which would be a double check). If the former, it will have gone through as £3,000 and the 'tills will balance'.

I do know that I have had similar errors occur (but for much smaller amounts) and they have only been corrected after I pointed them out to the bank.

I think, in this, case, I would leave it to the person who wrote the cheque to ring their bank.

sgx.saint

Well I am not 100% sure, but if the cheque says £2000 pounds on it, it has it written as "Two housand pounds, no pence", it would seem awfully silly if no one or no system picked up on this.

Otherwise whats the point in writing a figure on a cheque if it can and is ignored.