LLoyds shredding business cheques instead of banking them

Robin9

If Lloyds etc are going to become very precise as to the names of the payee then life could get very difficult. What happens when the name "Clark" should actually be "Clarke" ?

It's all very well suggesting you pay in at counter with a real person but we are now being encouraged to use an App and scan ourselves.

Terry_Towelling

Chino wrote: »

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

Evidently. Does anybody? Look what happened in 2008.

OopNorfJonny

I have nothing in writing from the Bank telling me what my customers must make out the cheques to.

I am self employed with a trading name, and not a proper business. With a Ltd co you are incorporated under a particular name and that's that.

When self employed with a trading name you can take payment under your personal name or trading name , or the payment might say both. My account info has my personal backwards, the letters T/A and then two word trading name and a 2 word business description.

Its not clear how LLoyds computer would like it written but it was agreed , crustal clear, with the branch manager that cheques would be taken in my two word trading name and this has been the case with every single cheque every banked for 10 years. Its on all my invoices , make cheques to trading name. I've banked many hundreds of cheques to this LLoyds account, all made out exactly the same to my two word trading name. I have never presented a cheque with anything else written on it and I have never been told I or my customers have done anything wrong.

This might all seem very alien but if you are self employed it is the norm. , EG Luigi Smith T/A Luigi's Pizza takeaway food - cheques to Luigis Pizza, John Smith T/A John's Cars Taxi Services, cheques made to Johns Cars, Joe Bloggs T/A Snapper Joe Wedding Photography, cheques made to Snapper Joe, etc etc. Now are all these small businesses going to have their cheques shredded because the payee name does not exactly match, letter for letter what Lloyds computer expects? Will Johns's Cars have his cheques shredded because his Customer missed an apostrophe?

Anyway, the problem is not that the cheques were rejected, the problem is that the cheques were destroyed because "computer says no". Not even Little Britain came up with "Computer says no = cheques destroyed". A sensible system would have been to return the cheque to the account holder, LLoyds refuse to do this and instead destroy the cheques. Nor would they change the account name on their computer to match what was written on the cheque. Both options were repeatedly requested both to Customer serves on the phone and in Branch and both requests were repeatedly turned down. Its mind numbing incompetence.

Terry_Towelling

Right, to summarise.

Cheques paid into your business account using an automated system were 'withdrawn' and (seemingly) destroyed because the payee names did not match the account name on record.

Notwithstanding the fact you've now taken your business elsewhere and that you have nothing in writing from them stating how they would like your cheque payee names to appear, have you actually asked Lloyds to provide written confirmation of their requirements?

Have you made sure of Starling's requirements for paying in cheques using their automated system? (Would I be right in believing you have no other option with Starling?)

Lloyds refusals to accede to your requests to alter things is perhaps more an indication of rigid adherence to rules than incompetence. I imagine Lloyds stance on not returning the cheques is partly their 'belief' that they are no use to you anymore (which is a moot point) and that once they've scanned a cheque (that is no longer of use) a scanned image is all the customer needs and, more importantly for Lloyds, a cheaper way to administer the process.

Luckily, I guess, the 'real pain' asking for replacement cheques is not as 'real' as you envisaged because they were from 'regular payers'. You've also potentially got three better bank accounts now and will have better customer service too - so, every cloud...

Good luck

d123

OopNorfJonny wrote: »

I have nothing in writing from the Bank telling me what my customers must make out the cheques to.

You have nothing showing exactly how the name appears on the bank account?

Doesn’t it even show on the bank statements you would have received?

OopNorfJonny

Same thing happened with my new First Direct account yesterday but there was no drama as I was paying in over the counter at HSBC and the cashier simply gave me my cheque back. It was my private account this time. Cheque written with Christian name and surname with middle Initials. The Bank's computer says I have no middle initials so the Cashier accepted another check without Initials and gave me back the one with the initials. Spoke to customer Services and there was nothing that could be done in branch despite having passport and driving Licence with me.They are sending me forms to "change my name" and I have to fill them in and send them back with a copy of the passport that they didn't want to look at in branch. Its a bit of a faf but not in the same league as Lloyds shredding my cheques. Those who are not self employed will not understand the distress of that happening. First Business cheque is off to Starling Bank today so I shall see how I get on with them.

d123

OopNorfJonny wrote: »

First Business cheque is off to Starling Bank today so I shall see how I get on with them.

I wouldn’t be all that surprised if you have similar issues if the cheques aren’t made out to the actual company name you’ve got on the account.

Westie983

Hi,

Reading this thread, little confused where the cheques in your name or the business name? if you paid a cheque with your business name into your personal account then it makes sense why they have rejected the cheque as it the payee doesn't match the account name.

You say in your first post you were asked to open an business account so I going to assume that using your example that you have cheques for JoeCars and your account is Joe Bloggs TA Joe Cars?

If they have indeed shredded your cheques then you will need to get them replaced but when cheques are normally rejected they are returned back to the customer with a covering letter explaining why they have been rejected and a copy kept in branch for a month to cover any queries.

Westie983

d123

Westie983 wrote: »

Hi,

Reading this thread, little confused where the cheques in your name or the business name? if you paid a cheque with your business name into your personal account then it makes sense why they have rejected the cheque as it the payee doesn't match the account name.

You say in your first post you were asked to open an business account so I going to assume that using your example that you have cheques for JoeCars and your account is Joe Bloggs TA Joe Cars?

If they have indeed shredded your cheques then you will need to get them replaced but when cheques are normally rejected they are returned back to the customer with a covering letter explaining why they have been rejected and a copy kept in branch for a month to cover any queries.

Westie983

By the OP’s description he’s opened a business with a 4 word name but is insisting on depositing cheques made out to only the first 2 words.

His example was the account is in the name of “JoesCars Taxi Services” and he is depositing cheques made out to “Joes Cars”

JuicyJesus

d123 wrote: »

His example was the account is in the name of “JoesCars Taxi Services” and he is depositing cheques made out to “Joes Cars”

Given that cheques are often written out by punters who frankly couldn't give a toss, I don't think it's unreasonable for that to be allowed or to think that it would be.

I'd have accepted it when I worked for a bank and frankly if we hadn't then we'd have had hundreds of complaints about cheques being rejected.