lent colleague money

curchep

According to this BBC article: http://news.bbc.co.uk/1/hi/programmes/moneybox/3537727.stm

'if you are hoping to defer payment, do not do it with a cheque'

mountainofdebt

andygb wrote: »

Really?
Care to explain?
If someone gives me a cheque today and dates it April 1st, then that is "postdated", and I would be very unwise to attempt to pay it into my account.

Ok so I know this is wikipedia but http://en.wikipedia.org/wiki/Post-dated_cheque

and just for clarification

http://news.bbc.co.uk/1/hi/programmes/moneybox/3537727.stm

Nicki

mountainofdebt wrote: »

Well there's no such thing as a post dated cheque so if you wanted to be sneaky you could bank them all a few days before she got paid and then there's a better chance of them not bouncing

If you want to play fair then just bank the relevant cheque a few days before payday

Don't most people have more funds in their account a few days AFTER payday, not before? That's certainly how it works in our household!

krlyr

Nicki wrote: »

Don't most people have more funds in their account a few days AFTER payday, not before? That's certainly how it works in our household!

But cheque take a few days to process, so I imagine the idea is that they clear on or just after payday

andygb

mountainofdebt wrote: »

Ok so I know this is wikipedia but http://en.wikipedia.org/wiki/Post-dated_cheque

and just for clarification

http://news.bbc.co.uk/1/hi/programmes/moneybox/3537727.stm

OK I think that I should qualify my knowledge on this subject, having worked in finance and banking all my life (unemployed for the last year).
The BBC article is dated 2004, and I know for a fact that it does not tell the full facts. In the professional/corporate World, where you are receiving cheques (yes, still cheques) on a regular, daily basis from clients, it is still COMMON to receive postdated cheques, particularly in cases where you have agreed deferred payment terms with the other party.
It is also common practice to log EVERY cheque received and photocopy the front and rear of the cheque before paying into your bank account. This is done mainly to protect yourself should a cheque be returned for some reason - no signature, insufficient funds in the account, or in this case - FORWARD DATING.
You would also diarise postdated cheques, and should have a schedule set up to alert you to the date they should be paid into your account.
I would consider it very dishonest of the person receiving the cheque, if having agreed to take a postdated cheque, they then decided to attempt to present it to the bank.

Claree__x

andygb wrote: »

I would consider it very dishonest of the person receiving the cheque, if having agreed to take a postdated cheque, they then decided to attempt to present it to the bank.

Dishonest, yes, but not to say that the bank wouldn't cash it straight away - 'cause they do.

Edit: Just to say about koalamummy's post

Could you open a basic or savings account with the bank the cheques were issued from? If you do this then usually the money will be transferred from their account to yours instantly.

I've never, ever heard of this from working in banking?

Brallaqueen

Thank you everyone. The dates on the cheques are all in the past - I asked for these upfront as security and very glad that I did now. My colleague preferred to pay in cash and each month i'd swap the correct cheque for cash, but after I left work in oct this stopped and she said she was struggling to pay me. I am beginning to get frustrated. She was able to pay some off in january but refuses to talk to me or face me as she is 'so ashamed' and put it under the outside mat. Via text she has offered to pay off more this weekend which is something, if it happens. If it does, I will be more reassured that she does infact intend to pay me, back.

The account is not the same as where her wages go as far as I know. I am reluctant to cash the cheques without guarantee of the money, as bouncing them may cost me, will completely ruin any goodwill on her part to pay up and I will still not have the money.

andygb

Claree__x wrote: »

Dishonest, yes, but not to say that the bank wouldn't cash it straight away - 'cause they do.

In my experience, based on nearly 30 years working for medium (100+ employees) to large (1000+employees) firms mostly in London, our business manager would inform me if we had inadvertently tried to bank a post dated cheque. If the cheque was dated a week in advance, then the bank would hold it and represent it on the date. If it was more, then the bank would return it to us and put through a contra entry on the account.
I am of course talking about our dealings with large banks - NatWest, RBS. HBOS, Lloyds, Barclays, Coutts & Co, and with those organisations they always acted very professionally.

Claree__x

andygb wrote: »

In my experience, based on nearly 30 years working for medium (100+ employees) to large (1000+employees) firms mostly in London, our business manager would inform me if we had inadvertently tried to bank a post dated cheque. If the cheque was dated a week in advance, then the bank would hold it and represent it on the date. If it was more, then the bank would return it to us and put through a contra entry on the account.
I am of course talking about our dealings with large banks - NatWest, RBS. HBOS, Lloyds, Barclays, Coutts & Co, and with those organisations they always acted very professionally.

I'm not talking about business cheques though, just a personal one. Personal accounts won't hold a cheque in my experience.

sassyblue

Brallaqueen wrote: »

The dates on the cheques are all in the past - I asked for these upfront as security and very glad that I did now.

Absolutely NO security there. :eek: The next day she could have withdrawn all money from that account and closed it leaving you in the lurch.

Cheques are an order to pay....but they are not guaranteed hence why they bounce.

Don't do that again OP! :eek: hope you get repaid.