Represented cheques

edited 30 November -1 at 1:00AM in Reclaim Bank & Credit Card Charges
5 replies 5.3K views
ValerieRValerieR Forumite
3 Posts
We were given a cheque by a customer, who accidentally missed out a digit when writing the date. We asked our bank (HSBC) if the cheque was acceptable and they said it should be OK. However, a few days later, the customer called in to say that her Bank (Lloyds TSB) had contacted her to say that the cheque was null and void because of the mistake and so she had come to make a card payment - which she duly did and the card payment was credited to our account with HSBC on 12th September.
So everything was resolved - or so we thought! But the cheque keeps on being represented and, of course, rejected and WE keep getting charged £4 every time this happens. We have contacted HSBC and asked them to stop representing this cheque, but they say that it is Lloyds TSB who are doing this and they also claim that neither they, nor we, can do anything to stop it as only the customer can do that - and we don't have any contact details!
We have asked HSBC for the account number and sort code form the cheque so that WE can contact Lloyds TSB, but they won't give it to us and just keep repeating that only the customer can put a stop to this - so presumably this cheque will be keep on being represented indefinitely! It is ridiculous as we already have full payment by card now and so we no longer have any right to cash the cheque in any event - and we have told HSBC this. Surely this cannot be right and if it really IS Lloyds who are doing this, how come WE are being charged by HSBC every time?

Replies

  • [Deleted User][Deleted User] Forumite
    0 Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    MoneySaving Newbie
    Make a complaint in writing to HSBC and, if in the unlikely event you get no joy, you can refer it to the Ombudsman.
  • thank you. I have already made a written complaint to our account manager at HSBC, who still maintains that there is nothing HSBC can do. I can't see how the receiving bank can keep representing the cheque - but OUR bank levies the charge on us. Is this really standard practice in the banking world?
  • AquamaniaAquamania Forumite
    2.1K Posts
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    ValerieR wrote: »
    thank you. I have already made a written complaint to our account manager at HSBC, who still maintains that there is nothing HSBC can do. I can't see how the receiving bank can keep representing the cheque - but OUR bank levies the charge on us. Is this really standard practice in the banking world?

    Then ask him to issue a 'deadlock' letter to that extent. Then you will be able to take it to the ombudsman without further delay :)
    (otherwise you have to wait 8 weeks from the inital complaint)

    Cheques should only be represented if there is a reasonable chance that on re-presentation they will be honoured. If the cheque was not honoured on first presentation due to an error in the way it was initially filled out, then it would be unreasonable to expect it to be honoured on representation (assuming it has not been altered in the meantime)

    Yes it is common practice particularly for business accounts to charge a customer that pays in a cheque that is not then honoured.
  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
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    A cheque can only be represented when there is a reasonable chance of payment. If there is an error on the cheque that means it will never be paid (such as in this case with the incorrect date) then it should not be represented and it is your bank that is at fault as they decide whether to return it to you or to represent it.

    You need to make a formal complaint to the HSBC complaints team. Not your branch. You should also mention that you complained to the branch who in turn did not treat your complaint correctly. You should have received a letter outlining what they believe your complaint was and their response to that complaint and told you can refer it to the FOS if you disagree. If that hasnt happened then they have not followed the correct complaints procedure. If they were able to answer your enquiry and it was more of a vent than a complaint then that would be fair enough but if you used the word complain and they could not deal with it satisfactorily then they have done wrong there too.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • ValerieR wrote: »
    thank you. I have already made a written complaint to our account manager at HSBC, who still maintains that there is nothing HSBC can do. I can't see how the receiving bank can keep representing the cheque - but OUR bank levies the charge on us. Is this really standard practice in the banking world?

    Really?

    I would make a complaint about that too ;)
    He really should have told you about their own complaints procedure.
    http://www.hsbc.co.uk/1/2/contact-us/complaints
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