Cheque Cleared then returned by bank

C

cougar330

Guest
We recently lodged a cheque which was cleared by the bank a few days later. Subsequently after clearing the cheque the bank then came back to us and said that the cheque was stolen and that they were taking the money back from our account. Of course I accept that as the cheque was stolen then the money was never ours, however the bank did clear the cheque... Had the bank the right to take the money back???
 
What do you mean when you say that they "cleared the cheque a few days later"?

If I have a doubt about a cheque, I give it to my bank and they send it for "special clearance". That means that the bank on which the cheque is drawn gives the ok. It is the equivalent of walking into the branch on which the cheque is drawn and asking them to give you cash in exchange.

Normally, you just lodge a cheque. The banks give you credit for it on the assumption that it is valid. If it turns out to be a dud, they just debit it from your account.

Brendan
 
Brendan,
On banking on line you can see what amounts have been cleared and what is waiting for clearance. It shows interest payable on an overdraft etc on the same page. I'm probably just being pedantic (is that spelt right!) but my point is that the bank cleared the cheque and then subsequently debited it later
 
I think Brendan is right. They probably just gave you credit on the assumption that the cheque was valid before it had gone through the entire cheque clearing process or the stolen cheque was only reported after the funds had cleared. You are still not entitled to the money either way
 
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