REFUNDS PAID BY CHEQUE - A CUNNING PLOY?

Adracht

I received a letter from my home insurer, Privilege, the other day telling me how sorry they were to have overcharged me for insurance.  I needn't have gotten excited - the amount was £3.34 - but better in my pocket than theirs, right?

I read further to find that the refund will be paid by CHEQUE!

Now, my nearest bank is over twenty miles away and I hardly ever visit.  I'm loath to make a special trip to reclaim such a small amount HOWEVER, if we all do that - and there  are so few banks these days - then guess who gets to keep the overcharge?  

Given that they have already sent me a letter (cost?) and they are now going to send another letter, containing a cheque, it's fair to say that they will be spending as much as it's worth to issue this refund.  MOREOVER, if I don't cash the cheque in 6 months, then they will keep the overcharge, albeit minus the cost of two letters and a cheque.

My little refund, plus all the other little refunds that no-one can/bothers to cash, must mount up to a sizeable amount.

Is the issuing of cheques for refunds, particularly small amounts, tantamount to a deliberate strategy on the part of companies to avoid actually paying out these amounts?

Thoughts, please!

DullGreyGuy

Adracht said:

I received a letter from my home insurer, Privilege, the other day telling me how sorry they were to have overcharged me for insurance.  I needn't have gotten excited - the amount was £3.34 - but better in my pocket than theirs, right?

I read further to find that the refund will be paid by CHEQUE!

Now, my nearest bank is over twenty miles away and I hardly ever visit.  I'm loath to make a special trip to reclaim such a small amount HOWEVER, if we all do that - and there  are so few banks these days - then guess who gets to keep the overcharge?  

Given that they have already sent me a letter (cost?) and they are now going to send another letter, containing a cheque, it's fair to say that they will be spending as much as it's worth to issue this refund.  MOREOVER, if I don't cash the cheque in 6 months, then they will keep the overcharge, albeit minus the cost of two letters and a cheque.

My little refund, plus all the other little refunds that no-one can/bothers to cash, must mount up to a sizeable amount.

Is the issuing of cheques for refunds, particularly small amounts, tantamount to a deliberate strategy on the part of companies to avoid actually paying out these amounts?

Thoughts, please!

Which bank are you with? Many allow you to deposit a cheque by using their app and taking photos of the cheque

Barkin

Banking app?  Post Office? 

Hoenir

For one off payments makes total commercial sense. Simple and streamlined. Why make a transaction more complex and costly than it need be. 

ColdIron

Joined 10 minutes ago and 5 AI generated posts already

Brie

I was refunded a small amount by a business in the US.  In USD.  And by small I mean small.  As I recall it was 54c.  So about 40p or something?  Obviously it would have cost me quite a bit to deposit this into a UK bank so I decided to have fun with them instead.  Fortunately all correspondence had been done by email so after a few weeks I sent them an email and asked "where's my cheque?  I've not received anything!"  So they cancelled the first cheque and sent me another.  After a few weeks I again emailed to enquire about my cheque and again cancelled and another sent.  I think I got bored after about 5 times - each time costing them postage from US to UK by airmail plus the time of one of their employees as well as the actual stationery.  They should have just sent me a dollar bill in an envelope - that I would have at least managed to use at some point.  

But for your situation - I say post office.  

DullGreyGuy

Brie said:

I was refunded a small amount by a business in the US.  In USD.  And by small I mean small.  As I recall it was 54c.  So about 40p or something?  Obviously it would have cost me quite a bit to deposit this into a UK bank so I decided to have fun with them instead.  Fortunately all correspondence had been done by email so after a few weeks I sent them an email and asked "where's my cheque?  I've not received anything!"  So they cancelled the first cheque and sent me another.  After a few weeks I again emailed to enquire about my cheque and again cancelled and another sent.  I think I got bored after about 5 times - each time costing them postage from US to UK by airmail plus the time of one of their employees as well as the actual stationery.  They should have just sent me a dollar bill in an envelope - that I would have at least managed to use at some point.  

But for your situation - I say post office.  

Long time ago did outbound telesales for a warranty, you got 30p per sale over 3 per hour in your shift along with my flatmate. Shortly after he left he got a thing through the door saying there was a letter with underpaid postage to be collected. 

So he paid for the bus, paid the £1 fee or whatever the penalty was and inside was a letter from the agency apopologising that they had miscalculated his commission in his last payslip and contained within was a cheque for 30p 

user1977

DullGreyGuy said:

Adracht said:

I received a letter from my home insurer, Privilege, the other day telling me how sorry they were to have overcharged me for insurance.  I needn't have gotten excited - the amount was £3.34 - but better in my pocket than theirs, right?

I read further to find that the refund will be paid by CHEQUE!

Now, my nearest bank is over twenty miles away and I hardly ever visit.  I'm loath to make a special trip to reclaim such a small amount HOWEVER, if we all do that - and there  are so few banks these days - then guess who gets to keep the overcharge?  

Given that they have already sent me a letter (cost?) and they are now going to send another letter, containing a cheque, it's fair to say that they will be spending as much as it's worth to issue this refund.  MOREOVER, if I don't cash the cheque in 6 months, then they will keep the overcharge, albeit minus the cost of two letters and a cheque.

My little refund, plus all the other little refunds that no-one can/bothers to cash, must mount up to a sizeable amount.

Is the issuing of cheques for refunds, particularly small amounts, tantamount to a deliberate strategy on the part of companies to avoid actually paying out these amounts?

Thoughts, please!

Which bank are you with? Many allow you to deposit a cheque by using their app and taking photos of the cheque

And they've always allowed you to deposit by post. No idea why people imagine that you need to go in personally.

Slinky

user1977 said:

DullGreyGuy said:

Adracht said:

I received a letter from my home insurer, Privilege, the other day telling me how sorry they were to have overcharged me for insurance.  I needn't have gotten excited - the amount was £3.34 - but better in my pocket than theirs, right?

I read further to find that the refund will be paid by CHEQUE!

Now, my nearest bank is over twenty miles away and I hardly ever visit.  I'm loath to make a special trip to reclaim such a small amount HOWEVER, if we all do that - and there  are so few banks these days - then guess who gets to keep the overcharge?  

Given that they have already sent me a letter (cost?) and they are now going to send another letter, containing a cheque, it's fair to say that they will be spending as much as it's worth to issue this refund.  MOREOVER, if I don't cash the cheque in 6 months, then they will keep the overcharge, albeit minus the cost of two letters and a cheque.

My little refund, plus all the other little refunds that no-one can/bothers to cash, must mount up to a sizeable amount.

Is the issuing of cheques for refunds, particularly small amounts, tantamount to a deliberate strategy on the part of companies to avoid actually paying out these amounts?

Thoughts, please!

Which bank are you with? Many allow you to deposit a cheque by using their app and taking photos of the cheque

And they've always allowed you to deposit by post. No idea why people imagine that you need to go in personally.

Have you seen the price of a postage stamp these days?

user1977

Slinky said:

user1977 said:

DullGreyGuy said:

Adracht said:

I received a letter from my home insurer, Privilege, the other day telling me how sorry they were to have overcharged me for insurance.  I needn't have gotten excited - the amount was £3.34 - but better in my pocket than theirs, right?

I read further to find that the refund will be paid by CHEQUE!

Now, my nearest bank is over twenty miles away and I hardly ever visit.  I'm loath to make a special trip to reclaim such a small amount HOWEVER, if we all do that - and there  are so few banks these days - then guess who gets to keep the overcharge?  

Given that they have already sent me a letter (cost?) and they are now going to send another letter, containing a cheque, it's fair to say that they will be spending as much as it's worth to issue this refund.  MOREOVER, if I don't cash the cheque in 6 months, then they will keep the overcharge, albeit minus the cost of two letters and a cheque.

My little refund, plus all the other little refunds that no-one can/bothers to cash, must mount up to a sizeable amount.

Is the issuing of cheques for refunds, particularly small amounts, tantamount to a deliberate strategy on the part of companies to avoid actually paying out these amounts?

Thoughts, please!

Which bank are you with? Many allow you to deposit a cheque by using their app and taking photos of the cheque

And they've always allowed you to deposit by post. No idea why people imagine that you need to go in personally.

Have you seen the price of a postage stamp these days?

Of course. I don't think anybody's arguing that making a one-off refund of three quid makes much economic sense for either party...