Bank Cleared cheque then bounced it ??

doc64

hi everyone

need advice from the pro's here

i had been given a cheque which was cleared & then the bank refused to
honour it at the last minute.

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the story is:

my account with same bank as the other party, therefore, i was told when i
deposited the cheq (friday afternoon) that it will clear over night and i could cash it on monday anytime. then i rang the bank a few times on monday before i could get to the bank monday afternoon. Each time i phoned they said the cheq had cleared. i went to the bank and asked them for a bankers draft, the amount needed the CHEQ to be cleared, as i was told it was.
As the cashier was about to write the bankers draft, she was told that the cheq had not cleared and they could not give me the draft as it needed cleared funds.

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My question is Can a bank update my account with the cheq and tell me that i have cleared funds 3 times during the day and at the last minute tell me i have not got cleared funds, is this normal??

cos i thought there are no cleared funds until a cheque is cleared first just in case the cheq bounces.

Advice needed urgently, please.... Thanx in advance

doc

clear_blu

I am suprised that the bank said a cheque would clear overnight, my bank requires 4 clear working days to clear unless you pay for special clearance. A cheque deposited on a friday would not normally clear until the following thursday as saturday/sunday are not working days.Are you not confusing creditted funds and cleared funds. I know when I recently depositted a large cheque it showed as credit to my account when I looked on the net but did not clear until a few days later.

jonesMUFCforever

Tell us what bank it is?
I have a theory if it is LTSB - don't know if anyone else.

ben500

A cheque is never actually cleared in the sense it cannot bounce, a bank can and will bounce a cheque months later if need be.

Biggles

I wouldn't have thought it would be unusual for you to able to draw against it the next day if it was another branch of the same bank. Sounds like it was the fact it was a banker's draft that was the problem.

What exactly did they tell you? That it had failed to clear completely, or just that it needed a few more days before they could write a banker's draft against it? Would they have let you draw cash (bearing in mind the fact, as stated above, that they could still have bounced the cheque several days down the line)?

ranger1066

My OH had something similar happen.
Paid cheque in, checked online a week later had cleared, OH called bank to ensure was cleared, told it was, withdrew the money - cheque then bounced, pushing OH into unauthorised overdraft, happened with LTSB and EGG, :mad: . Banks chased OH for money - had been spent by the time they bounced. Told banks as they told OH it had cleared, it was their problem and we are not paying. Havent heard from them since. Thankfully.
Sorry not helpful to OP but thought i would just share.

dunstonh

Are you mixing up the ability to draw on the cheque with the actual clearence of the cheque?

A number of banks will allow you to draw from the account the next day [with own bank cheques] but that doesnt mean they have cleared.

doc64

thanks for the interest in this post guys.
part 2 of the story.....

it was HSBC,
the reason they said it would clear overnight was that both accounts were at the same branch of the same bank HSBC, this is why they were clearly saying that i had cleared not credited funds..
thanx again
doc

jonesMUFCforever

Even though it is not LTSB I will tell you my theory (may or may not apply to HSBC - I don't know how they work).

You take credit slip and cheque to counter.
If both accounts are personal (not business) the cheque should go through as cleared immediately.
However if there are insufficent funds to pay the cheque immediately it is sent through the clearing cycle (just as any other cheque drawn on a different bank) - BUT - the cashier cannot tell you this as it is deemed to be disclosing information - the only information he could tell you is that the system is showing the funds as available some 4 days later. He is not allowed to tell you that it may bounce.
Sometimes by the end of the clearing cycle the cheque is paid and you can use the funds. If not then you are informed that it has not been paid and will either go round the clearing cycle again or the cheque returned to you.

That is what I think may have happened in this case.

dunstonh

House cheques are processed as cleared as the cheque doesnt leave the building. However, it can still be bounced even if the system shows it cleared because you have to allow time for it to appear on an unauthorised borrowing list and a decision to be taken.

So, in this case, there is no fault with the bank.

jonesMUFCforever

dunstonh wrote: »

House cheques are processed as cleared as the cheque doesnt leave the building. However, it can still be bounced even if the system shows it cleared because you have to allow time for it to appear on an unauthorised borrowing list and a decision to be taken.

So, in this case, there is no fault with the bank.

This used to be the case - but no more certainly in LTSB.
All cheques go in the overnight bag - the only items retained in branch now are credit/debit card withdrawal slips, hand written credits and withdrawals ie anything that does not have an OCR line which can be read by the bank's computers.