Bank refused to allow a branch withdrawal

newwave19

I've made a complaint with my bank and they have responded but have missed completely what the complaint was about.


A cheque was put in the bank first thing on the Monday morning and we were told the usual 3-5 working days, but that it might be available to withdraw on the Friday. Anyway, the money was showing in the account the following day, but just not available as expected, but the Wednesday night we noticed that the money was now available. thursday was a bank holiday so Friday morning we went to the bank to withdraw the money, to which the cashier started off saying it shoouldn't be a problem, it just had to be authorised by the manager....but this is where the problems started. The manager refused to give the money out as "the cheque hadn't cleared yet". We got home and contacted the customer services department, and spoke to a few different people who all went down the same route and didn't know why the bank wouldn't let us withdraw the money. The funny thing about it is, that we could use the debit card to withdraw the funds, just not get cash from the branch.


Anyway, we were withdrawing the money to purchase a car which we had already paid a deposit on, but the dealer was in the process of changing card merchant, and it wouldn't be back up and running until the next week, But as 1 car had packed in and both me and the wife working different shift patterns, we needed 2 cars for the dropping off and picking up of kids from the child minders we needed the car ASAP. I feel completely let down by the bank and i am even out of pocket over the whole thing and will be seeking compensation over this all, but could someone please give me an idea of what to expect. We had paid £100 deposit, which we lost because we couldn't get that car that day, the car we did end up getting was nearly £1000 more (i know i can't expect this, but would it be reasonable for the bank to cover some of this). There was numerous calls and stress in dealing with the whole matter.


Sorry for the whole big rant, but its best being prepared.


Cheers
Phil

colsten

No bank is under any obligation to let you withdraw money against a cheque that has not yet cleared although they may allow you to at their discretion. What do the T&Cs of your bank say about cheque clearing times?

newwave19 wrote: »

The funny thing about it is, that we could use the debit card to withdraw the funds, just not get cash from the branch.

Are you sure you could have used the card to withdraw the money? If so, why didn't you?

Kim_13

I presume they needed most/all of the money that day and I haven't heard of ATM withdrawals of more than £500 per day being permitted.

colsten

Kim_13 wrote: »

I presume they needed most/all of the money that day and I haven't heard of ATM withdrawals of more than £500 per day being permitted.

Depends on the bank and the card you have. For example, Santander Select lets you draw £750 per day.

PeacefulWaters

When did this happen?

Which bank was it?

Thursday was a bank holiday? Which country was this?

CKhalvashi

Kim_13 wrote: »

I presume they needed most/all of the money that day and I haven't heard of ATM withdrawals of more than £500 per day being permitted.

Mine is £1000 a day, in 2 chunks of £500.

I think I've only actually used it once (actually twice; £2000 in about 10 minutes, one just before midnight and one just after), but it's useful to have it there.

haras_nosirrah

Why did the dealer withdraw the car from you because you couldn't pick up that day? I am guessing that is why you lost your deposit and had to buy a more expensive car? If that is the case then it is unfair of the dealer to not give you some extra time especially if you could prove the money existed just not yet accessible

If thursday was a bank holiday (where was it a bank holiday?) Then friday was the third working day (tue, wed, fri) so if they quote 3-5 working days then that would give them till tue so booking the car to be no funds no car for the third working day was always going to be high risk to you

How much was the car and how much were you trying to withdraw? Over a certain amount may have meant you should have called the branch to book the funds as if you arrived at the branch expecting to withdraw 10k over the counter in cash they may not have had it there or it may have been subject to additional checks e.g money laundering due to the amount of money

Could you not have paid the dealer by card or by cheque?

In short i dont see how a complaint would generate more than an apology and a few pounds inconvenience money. They certainly wont pay 1k for the more expensive car as that was your choice. Did you ask the dealer to hold the car for a couple more days or try to pay with other means? You have to mitigate your losses and only giving yourself 3 working days for a process which is 3-5 working days was simply not enough time and that was your error

2gorgeousgirls

I'm guessing he's talking about St Patrick's day, Thursday 17th March, in Northern Ireland.

System

"we were told the usual 3-5 working days, but that it might be available to withdraw on the Friday."

So you knew it was not a promise but only a possibility? Why did you commit money you knew you might not have?

antrobus

newwave19 wrote: »

...A cheque was put in the bank first thing on the Monday morning and we were told the usual 3-5 working days, but that it might be available to withdraw on the Friday. Anyway, the money was showing in the account the following day, but just not available as expected, but the Wednesday night we noticed that the money was now available. thursday was a bank holiday so Friday morning we went to the bank to withdraw the money,

Cheque clearing works this way in Great Britain; your cheque was paid in on Monday (that's Day 0), Wednesday would be Day 2 - cheque clears. If Thursday is a Bank Holiday then the following Monday would be Day 4, cheque is available for withdrawal, and on the following Wednesday, Day 6, the funds are guaranteed.

I know that clearing arrangements are different in Northern Ireland, but as far as I'm aware they operate to the same timeframes. At least this document says they do.

http://www.chequeandcredit.co.uk/files/candc/press/cheques_the_facts_2012.pdf

The point to understand would be that all cheques paid into an account show as cleared funds at the end of Day 2, but the funds are not yet available for withdrawl until Day 4, in order to give the paying bank a chance to reject it.

Stevie_Palimo

If you write to the banks CEO I think they should be happy to pay for the car outright for you here as recompense for this truly awful situation you were put in at the hands of the cheque clearing system.

You are entitled to nothing here so just forget about the situation and move on with your life, Think what it would be like to live in Syria with genuine daily issues.