Advice needed to deal with Certegy

oog_boog

Hi All,

Looking for some advice for an issue with my dads company which he is pulling his hair out about.

He directs a limited company, and had some cash flow issues where several cheques were dishonoured in a short period of time (business is slow). He prepared the company involved beforehand who didnt say it would be a problem, and thought nothing of it.

They cleared second time round, but over the next few weeks received several letters from a company called Certegy Ltd saying there are charges that he now has to pay.

The total amount of charges come to £990.00 - these have been said to include:

Cheque Returned unpaid - £10
Redeposit of Cheque - £10
Cheque Returned Payment Stopped - £20
Cheque Returned Account Closed - £20
Letter Charge - £10
Referring account to external debt collection agency - £50

In total, that comes to £90 per cheque, and after they've paid the bank charge also, goes over £100.

He told me over dinner, and feeling how over the top these charges are, feel there must be something that can be done about it.

I have searched Certegy, and have seen several topics none of which are as severe.

Can anyone advise on the best way to deal with this? Dads already struggling with business at the moment working untold hours for little return - this is weighing heavy on his shoulders.

Thanks All,

Adil

bris

Companies do have charges when a cheque is returned unpaid to them. Your dad will have to deal with it as a B2B transaction you have no consumer rights and the charges look ok to me.

I assume your dad bounced about 9 or 10 cheques, it was mad to issue cheques that he knew would bounce, he still has to deal with the charges his own bank will hit him for.

oog_boog

Hi Bris,

Thank you for your reply.

Being B2B, what would be a better avenue to pursue? I realise I have posted this in the "Consumer Rights" section of the website - could the webmaster advise if this thread should be moved?

Dad didn't realise the cheques would bounce - they were all in a consecutive sequence with the total amount paid to the supplier being less than the sum of the charges.

I just think its excessive to charge £90 for a cheque that was represented and cleared, after also letting the company know there was an issue beforehand - banks charge around £25 which I thought was excessive, but Certegy's charges seem extortionate.

Regards,

Adil

timbstoke

There isn't really a suitable area of MSE for this - this is a consumer forum. However, for B2B transactions, most of the protections which consumers enjoy do not apply, and I very much doubt that the charges won't be included in the companies standard terms.

The charge is steep, but that doesn't make it unlawful or wrong. I suspect your dad will have to make the payments. The lesson is not to issue cheques which you're not able to honour.

dalesrider

oog_boog wrote: »

He prepared the company involved beforehand who didnt say it would be a problem, and thought nothing of it.

They cleared second time round, but over the next few weeks received several letters from a company called Certegy Ltd saying there are charges that he now has to pay.

Adil

Could it be that the company that the money was owed to. Use one of these co's who agree to pay them and then chase the debt.