Returned Cheque, whats next?

connormill

About 2 weeks ago I sold something and got paid by a cheque, normally I wouldn't take that, but it was a business cheque and the guy wrote his debit card number expiry date and cv2 code on the back of the cheque "incase of any problems".

The cheque was Lloyds and I bank with lloyds so when I paid it into my branch they told me the money was available immediately, since then the cheque keeps getting returned, £500 come off my account and then goes back on again, on my online banking it says:

12 Mar 12 RET CHQ RD PAY -500.00
12 Mar 12 REPRESENTATION DEP 500.00

This happens every couple of days, and today I got the original cheque back from Lloyds, it was attached to a letter sasting:

"We are writing to let you know that the cheque listed below has been returned unpaid

Reason: Refer to drawer please represent.

The amount of the cheque attached with this letter has been debited to your account."

Anyone got any idea what I should do? I no linger have the details of the man who wrote the cheque, but like I say I do have debit card details. Thought I'd try here first before spending hours on the phone with Lloyds!

jjlandlord

connormill wrote: »

but it was a business cheque and the guy wrote his debit card number expiry date and cv2 code on the back of the cheque "incase of any problems".

If by "business" cheque you mean from e.g. a limited company, then it's riskier than accepting a cheque from an individual if you do not know the status of said company.

Not too sure what you could safely do with the CC details you were given.

connormill wrote: »

Anyone got any idea what I should do? I no linger have the details of the man who wrote the cheque, but like I say I do have debit card details. Thought I'd try here first before spending hours on the phone with Lloyds!

The bank cannot help.
It is between you and the emitter of the cheque, whom you should contact to demand payment.

thenudeone

Lloyds can't help you. You'll have to contact the buyer and discuss it.

If the cheque is from a limited company you can get the address from here http://wck2.companieshouse.gov.uk/16a753ec6decfa3a9fe8f836280aab85/wcframe?name=accessCompanyInfo
and if necessary, issue a county court summons to their registered office.

Unless you know a fried who owns a shop and could put the card details through the credit card terminal? Although I suspect that if the cheque has bounced the debit card (even if the details were correct) would also be declined for insufficient funds (AFAIK, A £500 transaction would always require online authorisation).

Otherwise it's a case of using debt collectors / tracing agents to find the person so you can issue a CC summons.

Sorry I can't give any good news.

InsideInsurance

Wouldnt recommend getting someone to put through a CC transaction for you, if it does go through that just opens them up to a chargeback when the company reconciles their accounts and doesnt recognise the merchant.

I am surprised you sold something for £500 and dont have any details of the person who you sold it to!

As others have said, you can trace the company with relative easy and so you need to pursue them

Ben8282

connormill wrote: »

About 2 weeks ago I sold something and got paid by a cheque, normally I wouldn't take that, but it was a business cheque and the guy wrote his debit card number expiry date and cv2 code on the back of the cheque "incase of any problems".

The cheque was Lloyds and I bank with lloyds so when I paid it into my branch they told me the money was available immediately, since then the cheque keeps getting returned, £500 come off my account and then goes back on again, on my online banking it says:

12 Mar 12 RET CHQ RD PAY -500.00
12 Mar 12 REPRESENTATION DEP 500.00

This happens every couple of days, and today I got the original cheque back from Lloyds, it was attached to a letter sasting:

"We are writing to let you know that the cheque listed below has been returned unpaid

Reason: Refer to drawer please represent.

The amount of the cheque attached with this letter has been debited to your account."

Anyone got any idea what I should do? I no linger have the details of the man who wrote the cheque, but like I say I do have debit card details. Thought I'd try here first before spending hours on the phone with Lloyds!

What benefit to you did you imagine his writing the debit card number, ccv code and expiry date on the cheque would have? The cheque gurantee card scheme is no longer and, as you don't have a credit card terminal, how did you expect to be able to make use of this if there was a problem, which there is.

How many times was this cheque actually re-presented before you were advised that it had been returned marked 'refer to drawer'? Cheques are usually re-presented once only when returned 'uncleared effects - please represent'. I have never known a cheque to be represented over and over again or a cheque to be returned 'refer to drawer - please represent' either. Are you being charged each time?

If you no longer have the deatils of the man who wrote the cheque, then there is nothing you can do as you can't get in touch with him.

You can of course try to trace the company. However, you need to consider:
1. The address of the company may be a PO Box somewhere.
2. The company may not have the money to pay or may have ceased trading.
3. The cheque book may have been stolen and the company may deny all knowledge.

You can (and should) report the fraudster to the police of course but that won't get you your £500.

One final thought. What did you sell him? Is it something like a second hand car which could be traced?

Why did you accept the cheque? Why didn't you tell him sorry no and to use his debit card in an ATM to withdraw the cash?

meer53

It's quite common to have a cheque returned "Refer to drawer-please represent" think different banks just use different descriptions.