Using your chequebook

Vonnie · 6th May 2008, 9:36am

I know it's archaic that people still use cheques but I had to cover a payment last weekend and knew I wouldn't have the money until Tuesday. I guaranteed a cheque with my debit card and the cheque cleared two days after I expected it to (on Thursday). I had forgotten to put the money into my account but did so by 10am the day the cheque cleared, long before close of business to ensure the cheque was covered.

Checked my bank account today and I'd been charged £35 for 'card misuse'. I phoned the bank who told me that because I'd guaranteed the cheque with my debit card, it was card misuse since there wasn't money in the account for it to clear. I argued that a) this was the first I'd heard of it and b) the money was in the account well before close of business. As 'an act of goodwill' they refunded the charge but I can't help thinking goodwill fuck all, I wasn't in the wrong here.

So who was right?

Zippy · 6th May 2008, 9:40am

If you didn't have money in the account to cover the payment then I think the bank was in the right, how did they know that you were intending to put the money in the account a few days later?

**Ghostsuit** · 6th May 2008, 9:41am

So the cheque would clear on Thursday and you put the money in on Thursday at 10am?

Vonnie · 6th May 2008, 9:41am

Sorry I maybe wasn't too clear there - the cheque cleared two days after I thought it would, it cleared on Thursday and the money was in the account by 10am on Thursday morning and they still applied a charge.

Zippy · 6th May 2008, 9:46am

They'll probably think that if the money wasn't in the account in the first place you shouldn't have used a cheque. I don't know enough about cheques to say for sure but I didn't think they worked as a sort of extended overdraft.

Vonnie · 6th May 2008, 9:47am

Quote:

Originally Posted by Zippy

They'll probably think that if the money wasn't in the account in the first place you shouldn't have used a cheque. I don't know enough about cheques to say for sure but I didn't think they worked as a sort of extended overdraft.

That's what they said pretty much. I knew I didn't have enough in my account to use my debit card, but I also knew I would have enough by the time the cheque cleared. I'm just narked that I've been proved wrong

**Ghostsuit** · 6th May 2008, 9:47am

I guess it depends on the way the bank does the transaction...paging ADDY...I mean the bank will get the check well before the clearing day and perhaps clearing happens first thing in the morning as the money isn't there and you guaranteed it would be your in the wrong.

Think of it like this, You pay me by check and it clears on Thursday, I expect the money in my account on Thursday morning 12.01am not Thursday night.

Going by that process you didn't have the money in the account to pay me, therefore you've defaulted on the agreement with the bank.

Vonnie · 6th May 2008, 9:49am

Quote:

Originally Posted by Ghostsuit

I guess it depends on the way the bank does the transaction...paging ADDY...I mean the bank will get the check well before the clearing day and perhaps clearing happens first thing in the morning as the money isn't there and you guaranteed it would be your in the wrong.

Think of it like this, You pay me by check and it clears on Thursday, I expect the money in my account on Thursday morning 12.01am not Thursday night.

Going by that process you didn't have the money in the account to pay me, therefore you've defaulted on the agreement with the bank.

Yeah that makes sense but my understanding beforehand was that you had until close of business to square up your account before charges would be applied. The annoying thing was the bank was stowed so I used quick deposit rather than speaking to a teller, who could probably have cleared it up for me.

**Ghostsuit** · 6th May 2008, 10:00am

Quote:

Originally Posted by Vonnie

Yeah that makes sense but my understanding beforehand was that you had until close of business to square up your account before charges would be applied. The annoying thing was the bank was stowed so I used quick deposit rather than speaking to a teller, who could probably have cleared it up for me.

I think it comes down to the "using the card to guarantee " as I'm pretty sure my bank works the way you think that if by end of day the balance is positive your alright but I've never used a guarantee card for things so perhaps why I've not been pulled up for it.

Baron Samedi · 6th May 2008, 10:16am

Quote:

Originally Posted by Ghostsuit

I think it comes down to the "using the card to guarantee " as I'm pretty sure my bank works the way you think that if by end of day the balance is positive your alright but I've never used a guarantee card for things so perhaps why I've not been pulled up for it.

I think you're right - the use of the card might be the difference and they're using the date it was used as the basis for the charge, not the date of clearance. My bank only charge me if I'm overdrawn for 24 hours without authorisation - had a Maestro payment take me overdrawn overnight recently but as I transfered funds from my savings account as soon as I realised no charge was generated. I reckon if it had been a non-guaranteed cheque you'd have been fine. But what do I know?

endless psych · 6th May 2008, 10:56am

I think, if I remember correctly, that technically your in the wrong for using a cheque when the funds were not in your account. Although a little bit of common sense and customer service from your bank wouldn't go a miss as no actual harm has taken place.

Hammer · 6th May 2008, 11:03am

Quote:

Originally Posted by Vonnie

Sorry I maybe wasn't too clear there - the cheque cleared two days after I thought it would, it cleared on Thursday and the money was in the account by 10am on Thursday morning and they still applied a charge.

Can you not advance date a cheque so it can't clear until a certain date?

linz · 6th May 2008, 11:20am

Quote:

Originally Posted by Vonnie

The annoying thing was the bank was stowed so I used quick deposit rather than speaking to a teller, who could probably have cleared it up for me.

Just out of curiosity, what time are they meant to get round to dealing with stuff thats put into the quick deposit box?

endless psych · 6th May 2008, 11:22am

Quote:

Originally Posted by Hammer

Can you not advance date a cheque so it can't clear until a certain date?

You can but your not suppossed to.

**Ghostsuit** · 6th May 2008, 11:26am

Quote:

Originally Posted by linz

Just out of curiosity, what time are they meant to get round to dealing with stuff thats put into the quick deposit box?

Same day it's basically the same as going to the teller. I think in general all things are balanced at 11.59pm so if your - at that point you get the penalty applied which is why if a DD comes out on the day you can technically pay in some cash before the day ends and you'll be ok (maybe not 100% on that). So quick Deposit is the same as a teller in that case. When it comes to Vonnie though I think the use of garentee card made a difference.