bank charges

llisaclaire

hi all

i recently was given a cheque for a large amount of money, i deposited it into my bank account and when it showed the funds had cleared i used some of the funds to pay off some debts and withdrew some cash. the following day i went to the bank to make a withdrawl to be told i could not withraw any funds as my account was overdrawn when i asked why they advised the cheque i had paid in had been returned refer to drawer. i am now being charged daily for an unauthorised overdraft and will also be charged interest on the unauthorised overdraft. i have since not been able to obtain relacement funds from the person whom wrote me the cheque but was wondering if i should be paying the charges as the funds did show as cleared and the bank allowed the payments to go out of my account as well as allowing me to withdraw funds over the counter.

stclair

Although funds can be withdrawn, the Cheque can still be returned unpaid up until the end of the business day T+6 therefore you would be liable for any charges incurred on your account.

I would speak to your bank and see if you can come to agreement with them under the circumstances.

ses6jwg

Just because the money is available to withdraw it does not mean the cheque has cleared

Tight_as_a_Drum

ses6jwg wrote: »

Just because the money is available to withdraw it does not mean the cheque has cleared

Well, that seems like a clever way of doing it.

dzug1

Tight_as_a_Drum wrote: »

Well, that seems like a clever way of doing it.

It is.

It means you have access to the money earlier.

OK unless things go wrong.

lolavix

Tight_as_a_Drum wrote: »

Well, that seems like a clever way of doing it.

It's helpful for a lot of people e.g those who are paid regularly by cheque who know it will clear, so they have access to the funds more quickly.

The cheque clearing cycle is very clear, and if you choose to cash against uncleared funds, you will be liable for any charges if the cheque is unpaid.

Tight_as_a_Drum

I've hardly ever used cheques so it does seem a very strange way of doing it - how does one know when it's definitely cleared then if the money has already been in the account for some time?

dzug1

It's cleared to draw against after 4 days but can be reversed for a further 2 days

Mikeyorks

how does one know when it's definitely cleared then if the money has already been in the account for some time?

You read post #2?

Or the longer version here :

http://www.chequeandcredit.co.uk/246/