cheque expiry??

continualdiamond

This may seem like a stupid q but when you give someone a cheque does it have a time scale in which it must be put into a bank??

Basically we had a cooker installed on the 4th April, we paid with a dated cheque of the 22rd April and the money still hasn't come out of our bank account.

Where on a tight budget so now every week where having to make sure the money isn't spent incase this cheque comes out.

bonvonnie

Cheques usually have a 6month expiry

so technically, they have till 4th October to cash it.

correct me if i'm wrong

slscarborough

Yes that is correct - cheque would have to be cashed within 6 months.

tosca5

continualdiamond wrote: »

This may seem like a stupid q but when you give someone a cheque does it have a time scale in which it must be put into a bank??

Basically we had a cooker installed on the 4th April, we paid with a dated cheque of the 22rd April and the money still hasn't come out of our bank account.

Where on a tight budget so now every week where having to make sure the money isn't spent incase this cheque comes out.

Grrrr! i just hate when that happens, give the person you issued a cheque to a quick phone call,explain your circumstances and ask when they'll be banking the cheque.

Biggles

Many small businesses are a bit lacksadaisical when it comes to banking cheques.

Why worry? They're the worse off and you better; just leave the balance there to meet it and keep earning the interest ;-)

richt71

Yes 6 months halifax told me after I found a cheque just over a year old and tried to bank it. It went through though ok. Aparrently it depends on the issuing bank as to whether they honour any cheques over 6 months or return them as unpaid.

Biggles

richt71 wrote: »

Yes 6 months halifax told me after I found a cheque just over a year old and tried to bank it. It went through though ok. Aparrently it depends on the issuing bank as to whether they honour any cheques over 6 months or return them as unpaid.

It's more 'notice' that they're over six months old. More often than not, they'll slip through; I think (though I may be wrong) it just depends on the counter clerk - if they miss the date check, that's it, it's in the system.

rio

Many counter staff are told to only examine cheques drawn on their own bank, so if say you try to pay an out of date Barclays cheque into a Lloyds account they will put it through without even looking at it. It is up to the bank honouring the cheque to ensure that it is technically correct, although often in practice it is only the higher worth cheques that are verified.

Willman_Rodders

Just picking up on Rio's point where he says ....

'Many counter staff are told to only examine cheques drawn on their own bank'

In most cases there are two banks involved in the collection process; the collecting bank, and the paying bank. Both have different tasks to fulfil, and only when a cheque is paid in over the counter drawn on that very same branch (notice ... not Bank but branch) are the paying and collecting bank one of the same.

This is important. I have overheard counter staff trying to tell there customers that a cheque will not be honoured because it is out of date, or words and figures differ, or it's not signed. But the cheque is drawn on another branch of their bank or another Bank altogether. How does the cashier know if the person making the cheque has not already arranged for payment with their paying bank? They don't. The cashier, if they spot the mistake, can gently draw their attention to the spotted error, but they must not state the cheque will be unpaid.

Penelope_Penguin

bonvonnie wrote: »

Cheques usually have a 6month expiry

so technically, they have till 4th October to cash it.

correct me if i'm wrong

Sorry, that's a myth.

When I was treasurer of the school PTA we paid someone in advance, by cheque, to give sports coaching to the pupils. He agreed with the teacher that if he didn't deliver all 4 sessions, he would take no money. He gave 3 sessions, but was unable to do the last one. He agreed again not to cash the cheque, but I was concerned that he might do in the future, so clarified with the bank. I was told that a cheque can legally be presented at any time in the future.

You could always check and see what your bank's current policy is.

Penny. x

Biggles

It is 'common practice' for banks to reject cheques over six months old. If they are spotted, of course.....

However, they remain legally valid for six years.