# Bank Charges - recv'd bounced cheque



## Lobby (3 Dec 2008)

Hiya,

Just got a copy of my quarterly bank charges and there's a fee of 4.44 for lodging a cheque that subsequently bounced. 

Are the banks allowed charge this fee to the person who lodged the cheque, surely the cost should be placed back to the person who wrote the cheque? 

I know its only a small amount (and I can charge it back to the client) but it's the principle of the thing.


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## Mpsox (3 Dec 2008)

The bank on whom the cheque is drawn on will also have charged the drawer a fee. Your bank has charged you a fee to cover their costs in ensuring your account is debited correctly and within the appropriate time frame.  
The fees also exist to discourage customers from representing a bounced cheque unless they are reasonably sure it will be paid


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## MaryBe (3 Dec 2008)

This 4.44 charge is not for the bounced cheque.  This charge relates to your account being overdrawn on one occasion.  Perhaps the bounced cheque resulted in the overdraw but the charge is not related to the bounced cheque.  If you look at your statement you will see when you account was overdrawn and the subsequent charge of 4.44.  Remember each day your account is overdrawn (or over your overdraft) that 4.44 charge will occur.


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## Bank Manager (3 Dec 2008)

MaryBM,

I think you might be incorrect here - Mpsox has the correct information - not sure what bank the original poster is referring to but I know my own bank (BOI) do levy a charge of E3.30 in this type of case.

Regards,


BM


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## MaryBe (3 Dec 2008)

Hi Bank Manager (mmmm)

As far as I know the banks make a charge to the payer rather than the payee as has been done in the past.  I think the payer (whose cheque has bounced) will be charged approx 12.50 for each bounced cheque.  I have a habit of relodging bounced cheques and eventually the payer pays up because it's costing them a fortune (as I have the cheque to relodge).  I reconcile quite a few bank statements and have only come across this 4.44 charge on overdrawn accounts.  I will stand to be corrected if someone can prove otherwise.


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## Padraigb (3 Dec 2008)

It might vary with the bank. I know that UB imposes a charge when a business lodges cheques that are returned unpaid.


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## MaryBe (3 Dec 2008)

Padraigb said:


> It might vary with the bank. I know that UB imposes a charge when a business lodges cheques that are returned unpaid.


 
One of the banks I deal with is UB and the charge is imposed on the payer not the payee (as was in the past)


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## Brendan Burgess (4 Dec 2008)

I understood that all banks charge the payee who lodges a bounced cheque.

It is not the fault of the bank. They have gone to considerable work and the only person whom they can charge for this is the person who presented the cheque.

Your complaint should be against the payer, not against the bank.

Brendan


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## Graham_07 (4 Dec 2008)

error


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## Lobby (4 Dec 2008)

MaryBM said:


> This 4.44 charge is not for the bounced cheque. This charge relates to your account being overdrawn on one occasion. Perhaps the bounced cheque resulted in the overdraw but the charge is not related to the bounced cheque. If you look at your statement you will see when you account was overdrawn and the subsequent charge of 4.44. Remember each day your account is overdrawn (or over your overdraft) that 4.44 charge will occur.


 
The account isn't and hasn't been overdrawn, the bank confirmed the 4.44 amount on the phone to me as well as it being listed on the statement as "unpaid item lodged". 

It's AIB by the way. 

I imagine there are inter-bank procedures for making charges back to the cheque writer when the cheque originates from a different bank.


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## Gulliver (4 Dec 2008)

The unpaid item charge of €4.44 is clearly listed on the AIB schedule of charges (Page 9) downloadable


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## FredBloggs (4 Dec 2008)

MaryBM said:


> Hi Bank Manager (mmmm)
> 
> As far as I know the banks make a charge to the payer rather than the payee as has been done in the past. I think the payer (whose cheque has bounced) will be charged approx 12.50 for each bounced cheque. I have a habit of relodging bounced cheques and eventually the payer pays up because it's costing them a fortune (as I have the cheque to relodge). I reconcile quite a few bank statements and have only come across this 4.44 charge on overdrawn accounts. I will stand to be corrected if someone can prove otherwise.


 
No - the bank of the payee definitely charges the payee.  Their relationship is witht he payee and not the payer.  however individual businesses may have local arrangements with their branch whereby they're not charged or the fees are refunded.


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