Problems with new account

libra10

A couple of weeks ago, My husband and I went to the branch of a building society (don't want to name at this point).  We both set up new ISA accounts for this year, and were given necessary information.  We handed over 2 cheques, one for his account and one for mine, both from the same bank.
Within a few days his cheque had cleared, but mine had not.  The balance was high enough to clear both cheques, and none of us had paid into ISAs this year.
Eventually (after massive delays holding on the phone), I got through to the BS where we had set up new accounts and explained my concerns.  The lady I spoke to said there may be a delay, but get in touch with the bank from which cheque was issued and check whether there were any problems.
I eventually got through to the bank and they said they couldn't see the cheque number as being received, and to get back to the BS again, and see what they say.
Which I did, after more long delays.
Eventually I got through again, but unable to speak to the adviser who we had dealt with.  But the assistant insisted that the fault was not with them, but the bank which isssued to cheque, and re-connect with them.
Which I did after more long telephone delays.  The assistant was very helpful and checked with someone else, they catogorically deny that the cheque has been presented at their bank, and if the BS where I opened the new account were to re-send the cheque, it would be dealt with the same day.
Of course, I couldn't get through!
In the meantime, I have received a letter from the new BS stating that the cheque 'has been returned unpaid by the payer's bank', therefore unable to open new account.

I might add that in over 50 years of banking and writing cheques, I have never written a cheque which has bounced!  and I am not going to start now.  I am concerned that this letter could reflect on my credit files, and have no clue where the cheque (for a considerable amount of money) is.

Sorry the post is so long, but could anyone advise what I can do in these circumstances.

Thank you

youngretired

In the old days cheque's used to be sent to the payee bank/clearing house to be processed, but a lot are now done electronically.

The Building Society should have the cheque (either because it was not sent to your bank or it was returned to them when unpaid) and they should have been given a reason why unpaid i.e. Refer to Drawer (lack of funds), Out of date, No signature, Cheque incomplete, Words and figure differ etc etc, which they should have advised you. If they couldn't re-present the cheque again to be paid then the cheque should have been sent back to you with the letter.

libra10

Thanks for replying.

The letter from the BS regarding the return of the cheque is 'account closed'.  No other reason, and my husband's cheque issued from the same bank account cleared perfectly.

The account is definitely not closed, it is our main current account, with direct debits, payments, everything financial, and maintains a healthy balance.

The BS has sent a copy of the cheque along with their letter, and there seems nothing wrong with it.  I just can't weigh up what is going on.  Never had anything like this before.

youngretired

If the Building Society has said "Account Closed" then I'm guessing they have keyed something wrong i.e. sort code or account number.

I would go back to them and ask where the cheque is and point out politely that the account is opened, as they were able to present your husband's cheque which is drawn on exactly the same account details. They have obviously done something wrong during processing your cheque and I would say warrants a complaint due to the inconvenience to you.

libra10

Thanks for your input @justretired.  I wondered the same, alhough I thought that these days cheques would be presented digitally.  I agree that something must have gone wrong either during processing of the cheque, whether a number being input incorrectly, or a digital failure.

For the past couple of days I have been given a run around, waiting for calls to be answered or someone ringing me back.  I've spent hours on the phone!  It looks like I will have to persevere on Monday, I need to know what has gone on.

MalMonroe

The fault may lie with the issuing bank. Would they be able to reissue the cheque? I'd chase them and find out what's going on because it doesn't seem as if the Building Society is going to budge. 

And also I'd be wanting to ask for some compensation for your time, worry and expense at having to play 'chase the cheque' - once I found out who was at fault here. I really don't think that would be unreasonable, since someone somewhere has actually caused your new BS account to be closed, against your wishes. Whoever is at fault really needs to get their act together before you approach the Financial Ombudsman (right?).

libra10

Thanks @MalMonroe it's certainly a concerning experience!  

I will try and get back to the BS on Monday morning, but even phoning at 9am you are unable to get through, 'our lines are busy etc.  Leave name and number, we will phone you back.'  But they rarely do!  You can spend hours trying to connect, then they blame the other side, and you go round in circles.

It's the BS saying that the reason the cheque was returned was due to the paying bank stating the account was closed.  Clearly untrue, as husband's cheque went through with no problems.  

I will try and speak to the Manager at the local BS, though not optimistic!  Will keep updated.

Thanks for input.

xylophone

Around two weeks ago you opened an ISA account  with XYZ building society, using a cheque drawn on a joint current account  held by you and spouse at  a certain bank.

On the same day and during the same visit, your husband did likewise.

When you logged into your joint account a few days later, you noticed that only one of those cheques (the one to your husband's ISA), had been cleared.

Several enquiries to both the building society and your bank did not produce a satisfactory  explanation but you have now received a letter from the building society with a copy  of the cheque which your bank had returned to the BS unpaid on the grounds that the account on which it was drawn had been closed?

As the joint account is very much not closed, it is your bank which has made the mistake?

Should you not take the Building Society's letter/photocopy unpaid cheque to your bank and request an explanation?

You could also make a formal complaint.

wmb194

I wouldn't bother chasing around after this. Just send a new cheque.

libra10

Thanks @xylophone you have summed up the situation perfectly. 

However, the bank from which the cheque was issued, insist and are absolutely adamant that this cheque has never been received by them. When I spoke to them on Friday, they said that if the BS sorted it out, they would clear the cheque the same afternoon.

Unfortunately, although I was on the phone for ages, I was unable to get through. 

@wmb194 I could certainly write a new cheque, but first I want to get hold of the first cheque. I would definitely be in trouble if both cheques were inadvertently presented. 

noh

Contact you bank. Ask them to stop the original cheque then issue a new one to the BS.