Cheque returned "Not signed in accordance with mandate".

Ponsienella

My husband set up a cash ISA with Barclays bank on 30th March. He wrote a cheque for £15,240 out of our NatWest account, fully intending to pay another £15,240 into the ISA in the new tax year.

Today he received a letter from Barclays saying the cheque has been returned unpaid for the reason stated on it (NOT SIGNED IN ACCORDANCE WITH MANDATE) and his account has been debited. He only received the post tonight when he arrived home.

We have no idea what can be wrong. He wrote the cheque out of NatWest, payable to himself and signed by himself and handed it over to Barclays when he opened the cash ISA.

I did exactly the same about a couple of weeks ago and mine hasn't been returned.

He is going to NatWest tomorrow to try and sort it out but our problem is, even if they have made some kind of mistake, it will then be the new tax year and so we will lose the interest-free benefit on it for 2016-17.

Any comments as to how to handle this or what the reason could be for it being returned would be very much appreciated.

AnotherJoe

Ponsienella wrote: »

My husband set up a cash ISA with Barclays bank on 30th March. He wrote a cheque for £15,240 out of our NatWest account

How quaint. Did he write it with a goosefeather quill? Was an electronic transfer not available?

AFAICS from a quick google, this phrase means that means the bank didn't like the signature. Seems to me you're stuffed, no way to pay in this year not even electronic will happen now AFAIK.

Super_Whiskey

How long have you banked with Natwest for? It might be that the signature they initially took from you is different from the one your husband is currently using. Some banks might overlook it if the cheque was £50 but for £15240 they'd want it to be pretty damn close I bet.

Ponsienella

Super_Whiskey wrote: »

How long have you banked with Natwest for? It might be that the signature they initially took from you is different from the one your husband is currently using. Some banks might overlook it if the cheque was £50 but for £15240 they'd want it to be pretty damn close I bet.

Thanks for your response Super Whiskey.

We've banked with NatWest for about 30 years so that may be the problem. If so, it might have nice if they could have telephoned and let us know so that we could have made alternative arrangements in time to meet the end of the tax year deadline. I think most bank staff would be aware of what it would be for, especially at this time of year.

My signature probably looks totally different now too and, touch wood, that hasn't been returned. (Hope I'm not speaking too soon on that one).

Ponsienella

AnotherJoe wrote: »

How quaint. Did he write it with a goosefeather quill? Was an electronic transfer not available?

AFAICS from a quick google, this phrase means that means the bank didn't like the signature. Seems to me you're stuffed, no way to pay in this year not even electronic will happen now AFAIK.

Funnily enough, hubby had a quill as a joke recently for a big birthday.....perhaps he should have written the cheque with that.
He's in IT, so all too aware of the security (ahem) of electronic banking.

Sounds like it could be his signature changing over time so we might just have to suck it up.

I suppose it's the kick up the rear we need to think about changing to a more beneficial bank account anyway.

dunstonh

Not drawn in accordance with mandate is rarely used. It tends to be done where multiple signatures are required but only one signed. It will not be signature. Where signature is different cheques are returned "signature differs". Reasons for cheques being returned are specific and come from a list. So, it will not be signature different unless it is totally different and reads like a different name.

I think most bank staff would be aware of what it would be for,

The role of identifying cheques and returning them is handled by the lowest grade staff. Many may just be out of school.

Ponsienella

dunstonh wrote: »

It tends to be done where multiple signatures are required but only one signed. It will not be signature.

The role of identifying cheques and returning them is handled by the lowest grade staff. Many may just be out of school.

When we first set up our account 30 years ago it did require 2 signatures but it hasn't been like that for many years now. We'll have to see what they say tomorrow.

Mmm, the current education system has a lot to answer. LOL.

POPPYOSCAR

When I had a problem with a cheque for an ISA with Santander I wrote them a new one and it was still accepted for that year.


Perhaps your bank will do the same for you if you explain the situation.

Nick_C

Do you have another live ISA account that you opened in a previous year? If so, you could perhaps fund that electronically in the next 2 hours and then transfer those funds to the new ISA. S&S Isa for example.

Foxriver8

"Payable to himself" - should it not have been made payable to Barclays? x

Just noticed it's a cash ISA. I had assumed stocks and shares in which case it would be made out to Barclays in order that they can invest it. If it's cash I'm not sure then.

Westie983

DO a faster payment into your ISA before midnight tonight and it will still count for this tax year, Im not sure about Natwest but you maybe able to do a faster payment of up to 25k online or on the telephone.

As you say the tax isa window is beginning to close... 86 mins and counting.

Payable to account holder is fine, I'm not sure if banks accept cheques payable just the bank now without account number or name on the payee line.

I would also try to explain the refusal of the cheque, you mention that it was a two to sign account and was rejected as "not in accordance with mandate" this rings that they were requiring two signatures on the cheque, as the account was originally set up two to sign.

Most of my experience is with cheques being rejected is if the name on the cheque doesnt match the account, rather then the signatures, rarely do you see two to operate accounts now, (tends to be accounts in trust or break down of relationships where both have to be present to sign)

Hope you manage to get money into the ISA for 2015/2016 year.