LLoyds shredding business cheques instead of banking them

Terry_Towelling

I don't think we need a lie-detector test!

So, have they destroyed the cheques or not?

What was it that caused you to notice a problem by Tuesday midday?

Have they posted you letters to say the cheques have been rejected? When did these arrive? Any copies of the cheques attached?

I don't think even Lloyds would expect the writers of those cheques to re-write them or pay you by alternate means without giving you something more concrete to reassure your payers that they aren't going to end up paying twice.

The Ombudsman won't look into your case yet because you have to go through the bank's complaint process first.

Goodness knows how this computer scanner thing is going to cope with some of the dodgy handwriting you get on cheques. They're going to have to be very careful rejecting cheques where the spelling matches but the writing is poor and doesn't scan.

Best of luck with your new banks.

OopNorfJonny

>So, have they destroyed the cheques or not?
My understanding is they have been destroyed, that's what the staff said verbally but the letter says "withdrawn".

>What was it that caused you to notice a problem by Tuesday midday?
I get a text once a week, Tue am, with the account balance and that said something unexpected so later in the morning I looked it up on my online banking which showed 2 cheques as not cleared.

>Have they posted you letters to say the cheques have been rejected?
>When did these arrive? - yesterday
>Any copies of the cheques attached? - yes, as did also the receipt I got out of the deposit machine.

I was going to post one of the letters but as I am new to the forum I am not allowed to post links.It appears I can PM images and I have already PMd a copy of the Lloyds Letter to one experienced but sceptical forumite, if you want to see it just PM me.

>I don't think even Lloyds would expect the writers of those cheques to re-write them or pay you by alternate means without giving you something more concrete to reassure your payers that they aren't going to end up paying twice.

I wouldn't expect it either but that's what they have done. I had luck that the two cheques in question were from regular payers so both have agreed to replace but many of my business transactions are one offs and I would expect problems or delays with getting some cheques replaced if this were to occur regularly. As a one man online business I already have trouble convincing people I am real. If even people on this forum don't believe Lloyds is shredding cheques then how would I convince my customers !

d123

OopNorfJonny wrote: »

As a one man online business I already have trouble convincing people I am real. If even people on this forum don't believe Lloyds is shredding cheques then how would I convince my customers !

Out of interest, what’s the reason you don’t get your customers to make out the cheques to your business name (as it is on the bank account)?

18cc

Just to let you know I think you need a deadlock letter from Lloyds before you can complain to the financial ombudsman and this requires you to raise a formal complain with Lloyds and give them 8 weeks to reply.

Congratulations on your new FD account I think you should put an entry in the Guinness book of records as that is definitely the fastest opening time for a FD account which normally operate at slug pace and require you to sign and return reams of paper (which usually arrives about 2 weeks down the line).

Starling are very quick they are an excellent bank.

sportsarb

d123 wrote: »

Out of interest, what’s the reason you don’t get your customers to make out the cheques to your business name (as it is on the bank account)?

Custom and practice of them being accepted by the bank for 10 years, I would imagine.

Not related to the post I am replying to but, people aren’t half judgemental. Jesus Christ.

OopNorfJonny

re "Out of interest, what’s the reason you don’t get your customers to make out the cheques to your business name"
They are and were made to the business name. When I say business, I am a self employed sole trader, not a ltd co. It was agreed with the Lloyds branch manager that I cold pay in cheques ether in my trading name or my personal name. My trading name is simply my surname and one other business related word.

Re "fastest opening time for a FD account" - its opened but not operational yet. I am waiting for a "welcome pack" and haven't even had the account number yet. By contrast the Starling account was opened in the same evening and by the following morning it was operational and I was transferring money into it. I was very impressed with Starling Bank, I hadn't heard of them before Tuesday.

AndyPK

I don't think its lloyds fault.

They out source cheque clearing to an external company. (as many do)

I had an issue with a cheque clearing that was scanned. It was sat there for over a month.
I think it was because my address was printed on the cheque and it was a different address to the bank account.

Chino

Terry_Towelling wrote: »

I don't think even Lloyds would expect the writers of those cheques to re-write them or pay you by alternate means without giving you something more concrete to reassure your payers that they aren't going to end up paying twice.

You evidently have little experience of how banks work in this country.

d123

OopNorfJonny wrote: »

re "Out of interest, what’s the reason you don’t get your customers to make out the cheques to your business name"
They are and were made to the business name. When I say business, I am a self employed sole trader, not a ltd co. It was agreed with the Lloyds branch manager that I cold pay in cheques ether in my trading name or my personal name. My trading name is simply my surname and one other business related word.

If you had the agreement in writing you would have genuine cause for complaint, but I still don’t get why you didn’t do as almost all businesses do and have business cheques made out to the business name by adding “Cheques payable to Name the Occupation” on your invoices.

It seems like a problem waiting to happen depositing cheques made out to your personal name into your business account.

eskbanker

OopNorfJonny wrote: »

the Branch manager says I can pay in cheques in my trading name

OopNorfJonny wrote: »

It was agreed with the Lloyds branch manager that I cold pay in cheques ether in my trading name or my personal name. My trading name is simply my surname and one other business related word.

Regardless of the rights and wrongs of what Lloyds did, going forward you won't be able to bend any rules via informal arrangements with individual employees when you're working with online-only banks, so it makes it all the more important to ensure that the name(s) of the account(s) you set up do correspond to the trading name if that's how you'll be paid....