Cheque clearing/bounce

unlucky204

I should add a bit more detail-the cheque was given to the person a few weeks ago and dated for next week. Without knowing when they will actually put the cheque in it's made it a bit difficult so I have spent a little of the funds. Sorry for the confusion with what I was trying to do. It's now out of my hands as I have no idea when the person will put the cheque in but I'm assuming on the date I wrote it for at the earliest to be on the safe side. This is why I don't write cheques if I can help it! Thanks.

TartanSaver

To start with, I thought perhaps the OP was up to this:
https://en.wikipedia.org/wiki/Check_kiting

Given that banks all use scans of cheques for clearing purposes, things happen a lot faster than they used to. It would be very unwise to rely on the hope that the cheque will be presented even later, especially as it was already postdated. If someone gave me a postdated cheque and said they needed me to wait a week until they had been paid, I'd probably be ok with it. If it then bounced, I'd be absolutely livid.

unlucky204

Wow, why are some people on the internet so suspicious. I have never heard of cheque kiting, I have written probably 5-10 cheques in my whole life time, and not any recently. Don't you think I would know a bit more about the process of cheques if I was up to something like that? Anyway, thank you for all the helpful replies. I am really glad I posted here as it seems from the replies that I cannot risk it and will have to get some money to put in when the cheque is due to be paid in, or at the very least the next day. If I'd risked it I may have had it bounce but I'll make sure that doesn't happen now.

henm2

From the clearing banks industry body is this guidance about the matter
http://www.chequeandcredit.co.uk/resources/faqs/post-dated_cheques
'Customers are advised not to post-date cheques because it is likely to be against the terms and conditions of their bank account. Problems can arise with post-dated cheques if they are paid in before the due date. Different banks have different policies, but the majority of banks discourage the practice. '

unlucky204

Yes I have read that since about post dated cheques, I didn't know at the time of writing it. Doesn't matter though as the cheque hasn't been paid in yet so that won't be a problem.

Just one other thing-will I know when the cheque has been put in? Will it show in my account as pending or can I ring the bank and ask them? If say the cheque was due to be put in on Wednesday at the earliest could I check to find out if it has been put in? That way if I knew i could go to the bank and put some funds in to cover it. If I knew the cheque hadn't been put in yet I would have extra time.

Deepika_Sharma

If the check bounces the worst that will happen are the criminal and civil cases.So as to avoid them you just have to quickly clear up things. As soon as you realize that there is a problem , get in touch with whomever you wrote check to. They are probably not interested in punishing you, they just want their money.
yes the person you are paying to will definitely come to know that the cheque has bounced as they get charged for depositing bad checks and they will pass the charges on to you.

bengal-stripe

unlucky204 wrote: »

......will I know when the cheque has been put in? Will it show in my account as pending or can I ring the bank and ask them? If say the cheque was due to be put in on Wednesday at the earliest could I check to find out if it has been put in?

A cheque, drawn on your account, will not show-up in advance. Your bank will not know about the transaction until the day the cheque gets presented.

Depending on your financial situation on that day, the cheque will be paid or returned "Return to drawer, please represent". Which means the cheque will be represented a few days later, so you've had time to get enough money into the account.

Ballard

bengal-stripe wrote: »

A cheque, drawn on your account, will not show-up in advance. Your bank will not know about the transaction until the day the cheque gets presented.

Depending on your financial situation on that day, the cheque will be paid or returned "Return to drawer, please represent". Which means the cheque will be represented a few days later, so you've had time to get enough money into the account.

As per my previous post, the cheque can get returned RD which would result in the cheque being sent to the payee whereupon they'll contact the drawer for the funds once more.

Ballard

Without knowing your circumstances makes it difficult to give good advice but might it be possible for you to arrange a temporary overdraft with your bank?

unlucky204

Thanks guys, I will have to borrow the money for a few days from family I think. I used to have an overdraft but then reduced it-I don't know if the bank would give me it back and in time for when I need it but I will ring and check. There's no way now I can risk the cheque bouncing so will have to do something. Thanks again you've all been really helpful.