Cheque name matching

ttrailor

I recently received a credit refund cheque because my utility company went bust. I paid it in to HSBC via their app (using cheque imaging). It all appeared to work and the money was credited to my account. I then tore up and threw away the original cheque. A few days later though I received a letter from HSBC saying the cheque failed to process and they’d taken the money back out of my account. 

The reason why the cheque failed to process - because it wasn’t payable to my full name. It was payable to ‘Mr’ and then my exact correctly spelt surname - but apparently that isn’t a name match for cheque image processing. (E.g. if my name were John Alan Smith then it was payable to Mr Smith - but HSBC need it to be payable to Mr John Alan Smith).

Because it’s for a credit refund from a failed utilities company it’ll be really hard to get another cheque sent out (and apparently now HSBC started processing it I couldn’t submit it any other way anyway so I do need a replacement). 

Apparently it could take weeks for a complaint against HSBC to be processed (and I’m not hopeful they’ll do anything there other than tell me to get another cheque). But it’s for nearly £500 so not a small amount!

Has anyone heard of any such nonsense - any suggestions? 

ttrailor

Oh - and its paying from another HSBC account too - so all within HSBCs control in theory!

Shakin_Steve

When paying in a cheque on Barclays mobile app, it clearly states the you should not destroy the original, but keep it and write "Paid in on --/--/----". I can't recall how long you should keep it for.
No help to you, sorry.

Shakin_Steve

Do you know who the administrators of the old supplier are? Or which company took over the accounts?

General_Grant

ttrailor said:

I recently received a credit refund cheque because my utility company went bust. I paid it in to HSBC via their app (using cheque imaging). It all appeared to work and the money was credited to my account. I then tore up and threw away the original cheque. A few days later though I received a letter from HSBC saying the cheque failed to process and they’d taken the money back out of my account. 

The reason why the cheque failed to process - because it wasn’t payable to my full name. It was payable to ‘Mr’ and then my exact correctly spelt surname - but apparently that isn’t a name match for cheque image processing. (E.g. if my name were John Alan Smith then it was payable to Mr Smith - but HSBC need it to be payable to Mr John Alan Smith).

Because it’s for a credit refund from a failed utilities company it’ll be really hard to get another cheque sent out (and apparently now HSBC started processing it I couldn’t submit it any other way anyway so I do need a replacement). 

Apparently it could take weeks for a complaint against HSBC to be processed (and I’m not hopeful they’ll do anything there other than tell me to get another cheque). But it’s for nearly £500 so not a small amount!

Has anyone heard of any such nonsense - any suggestions? 

No, I've haven't heard of someone destroying a cheque so soon after receiving it without knowing they had cleared funds.

Murmansk

General_Grant said:

No, I've haven't heard of someone destroying a cheque so soon after receiving it without knowing they had cleared funds.

When you pay a cheque in via the cheque imaging app on a mobile phone it normally clears by the end of the next working day if you've paid it in early enough so it would seem to be reasonable to destroy it after that point. The image is what's used to process the payment so it could be argued you still have the image even if you have destroyed the cheque?

ttrailor

General_Grant said:

ttrailor said:

I recently received a credit refund cheque because my utility company went bust. I paid it in to HSBC via their app (using cheque imaging). It all appeared to work and the money was credited to my account. I then tore up and threw away the original cheque. A few days later though I received a letter from HSBC saying the cheque failed to process and they’d taken the money back out of my account. 

The reason why the cheque failed to process - because it wasn’t payable to my full name. It was payable to ‘Mr’ and then my exact correctly spelt surname - but apparently that isn’t a name match for cheque image processing. (E.g. if my name were John Alan Smith then it was payable to Mr Smith - but HSBC need it to be payable to Mr John Alan Smith).

Because it’s for a credit refund from a failed utilities company it’ll be really hard to get another cheque sent out (and apparently now HSBC started processing it I couldn’t submit it any other way anyway so I do need a replacement). 

Apparently it could take weeks for a complaint against HSBC to be processed (and I’m not hopeful they’ll do anything there other than tell me to get another cheque). But it’s for nearly £500 so not a small amount!

Has anyone heard of any such nonsense - any suggestions? 

No, I've haven't heard of someone destroying a cheque so soon after receiving it without knowing they had cleared funds.

But I did have cleared funds... the money was in my account!

ttrailor

According to HSBC even with the original I’d still need to ask for it to be reissued because (1) it’s now a bounced cheque so needs to be reissued, and (2) it apparently must have my full name on it, has anyone ever heard of that rule? 

ttrailor

Shakin_Steve said:

Do you know who the administrators of the old supplier are? Or which company took over the accounts?

Centrica administered it on behalf of the the administrators and offgem - I’ll have to try and find someone there who can help...

ttrailor

Shakin_Steve said:

When paying in a cheque on Barclays mobile app, it clearly states the you should not destroy the original, but keep it and write "Paid in on --/--/----". I can't recall how long you should keep it for.
No help to you, sorry.

Yeah - wish HSBC had some kind of warning like that! 

ttrailor

ttrailor said:

Shakin_Steve said:

When paying in a cheque on Barclays mobile app, it clearly states the you should not destroy the original, but keep it and write "Paid in on --/--/----". I can't recall how long you should keep it for.
No help to you, sorry.

Yeah - wish HSBC had some kind of warning like that! 

Although apparently I’ll still need to get a reissued cheque either way as it’s now classed as a ‘bounced cheque’....