Cheque problem - please help

M

mibubio

Guest
Someone I know sent someone a check for money for something and they wanted to cancel the check, what would happen if the check was cancelled could the person he sent it to still get the money out? or no? like will the bank check to see if the check is cancelled or not?
 
if cheque is cancelled, BEFORE it is presented for payment from your account, then no money will be made from your account. You cannot cancel the cheque if it already has been presented to your account.
 
It usually takes 3 working days for a cheque to pass from one bank to another. This can vary depending on when the receiver actually presented it to his/her bank for cashing. If your friend cancels the cheque within 2 to 3 days then chances are it will be stopped. If its later than this and the cheque has reached your friends bank then I'm afraid its too late afaik.

will the bank check to see if the check is cancelled or not?
Click to expand...
Yes - They will check this before payment is made
 
The cheque was authorised in writing. You should cancel it in writing. THe bank may hold a temporary stop if you phone them - but they must act on a written stop. Note that banks post most transactions overnight - if it is posted overnight tonight, then it's already too late to stop.

see
 
Can you stop a cheque between the time it is presented in bank A and before it hits your bank B?
 
bond-007 said:
Can you stop a cheque between the time it is presented in bank A and before it hits your bank B?
Click to expand...

Yes, but that time has shortened, and is no longer 3 days as suggested by elcato above. BOI cheques presented in an AIB branch are often paid next day in BOI branches. And BOI cheques presented in any branch of BOI are presented electronically in the destination branch and paid within minutes
 
In the late 1980.s I know of a case where a cheque drawn on the Bank of Ireland and presented for payment in the AIB and the money cleared (after 3 days it was confirmed that the money was in the account) and then the check was cancelled and the money in the AIB account went back to the BOI. Don't know if the same thing can happen today but would love to know how they did it in the 1980's.
 
Do you mean if you have a very friendly relationship with your local bank manager who in turn has a cosy relationship with the other banks manager? Not sure what you mean by Joe Public, it was an ordinary member of the public this happened to.

Can you give me an example of how it can happen today in this scenario. I write a cheque drawn in major Bank B and Mr. X pays in into Bank A waiting for it to clear. Mr X calls into his bank 3 days later with Bank A specifically to see if it has cleared (ie is it in the account ) to which they confirm yes. Now I can then ring my Bank B and get them to stop the check and retrive the money from Bank A?
 
Yes Aileen2,

You have it in one. Mr X told me the story:

Basically. Mr X has work done on Item Y from Company Z. Mr X pays for Item Y. Cheque is cashed. Item Y is damaged on way to Mr X. 10's of K of damage done to Item Y. Far more than transportation company (arranged by Company Z) is insured for. Mr X phones (friend) manager in bank and cheque is umm... reversed, after it has cleared

Towger
 
Aileen2 said:
Do you mean if you have a very friendly relationship with your local bank manager who in turn has a cosy relationship with the other banks manager? Not sure what you mean by Joe Public, it was an ordinary member of the public this happened to.
Click to expand...

Unlike many other payment instruments, the legislation and practice of law is very clear in relation to cheques. So the type of things you describe only happen to people who do not know their rights or who fail to protest if their rights are breached......
 
There used to be such a thing as express clearance years ago where you paid the bank a fee of around £20 to clear a cheque with the issuing bank straight away. An associate of mine lodged a cheque and paid for express clearance and got funds on the cheque only for the cheque to be reversed 2 weeks later.
 
Surely it's illegal to take the money back after it has cleared? What would happen if the money was not just cleared but withdrawn, it couldn't be returned then?

Gulliver - the person who's check had cleared had no way to take on a big bank, of course complained loudly in the branch and taken (out of the public view) into bank manager's office with no joy, went to solicitor who wanted to proceed but joe public with no money isn't going to risk going to court with the cost of that and no guarantees of winning.
 
If you go into a bank or credit union they will always say that it takes 5 days for a cheque to clear. What they usually mean by this is that it can be stopped by the person who has written the cheque and returned "Unpaid" to your branch within that time frame. Even though if it is an AIB or B/I cheque and your a/c is in the same bank as the bank that the cheque is drawn it will be debited to the a/c on the same day or within minutes of you lodging it or next day if it is the other bank. It can still be returned Unpaid by the bank on which the cheque is drawn. The only way it can not be returned unpaid is if you have got cash for it at the branch counter and it is very difficult to cash cheques now, as all banks want you to lodged cheque through your own a/c.
On reading over this post I feel I may have confused people more!!
 
They will only pay cash it if the cheque is drawn on the same branch and is uncrossed subject to suitable ID.
 
and cheque is umm... reversed, after it has cleared
Click to expand...

that should not happen and i think you would have a good case against the Bank if it did. Once cleared and in your account unless lodged by accident (or possibly theft and even then) its should stay there.
 
It's all very well to say you'd have a 'good case against the bank' . Who amongst ye would take on the banks?

Anyway now I know, even when the money is 'cleared' it's better to withdraw it and put it somewhere else. Just to be sure.

Basically a check isn't worth the paper it's written on until the cash is in your hand.
 
Aileen2 said:
Gulliver - the person who's check had cleared had no way to take on a big bank, of course complained loudly in the branch and taken (out of the public view) into bank manager's office with no joy, went to solicitor who wanted to proceed but joe public with no money isn't going to risk going to court with the cost of that and no guarantees of winning.
Click to expand...

Oh yes he has.

Firstly you should look at the various codes of conduct. All of them are linked on [broken link removed]

Secondly, you can use the complaints procedures which each of the banks operate - they are obliged to respond formally to complaints properly submitted

Thirdly, you should go to the Financial Regulator on www.itsyourmoney.ie

Forthly, you should go to the Financial Ombudsman. He will not consider your complaint unless you have tried all other routes.

All situations whereby the bank is in breach of customers rights can be solved through these routes, and many other disputes between bank and customer can also be resolved.

And all of the above are free.

Solicitor should be absolutely the last resort
 
Last edited:
Thanks for that Gulliver, this incident happened a long time ago, before all those lovely complaints procedures, ombudsmen, citizen's advice centres and financial regulators etc, so it's outside the statue of limitations I guess (about 20 years). Even if these did exist then I wouldn't have known about them.

If it happened now I'd know what to do. The reason I posted my original query here was I was curious as to how they got away with it in those days which I've found out through this forum and being older and wiser and also thanks to AAM and other websites (no websites, nor microsoft then either) citizens are empowered. Also from the replies I've garnered that it actually could and does still does happen to people today.

Actually it was a very good lesson to me for I've had a lifelong aversion to banks since (and other powerful institutions) and I've never banked, nor will ever bank with the two banks involved.
 
You must log in or register to reply here.
Back
Top