Bounced cheques

[p4nd0rasb0x]

Im not sure if this is the right section to post this but here goes anyway.

I was dismissed from my last job for being off sick (whole new post) and i received a cheque for wages owed back in January, it bounced ! I informed my ex boss that if he didnt send a replacement cheque then i would start court proceedings. He sent another chq last week but ive just discovered that this too has bounced. Where do I stand seeing as i am no longer employed by him. Thanks

[Guest wino]

Is the bank going to represent the cheque? It might be that there was just not enough cleared funds availiable but there might be now.

 

As far as I'm aware to write a cheque that you know will not clear is fraud or something similar.

 

I would put in writing to your ex boss that you require a bankers draft within 7 days or you will start court proceedings immediatly and he will be responsible for costs.

 

I wouldn't have a telephone conversation with him. Keep everything in writing. Send the letter recerdered delivery so you have proof he received it.

 

Hope this helps:)

[Conniff]

As above P4, but I would make the demand also the letter before action ie

'no further communication will be entered into and you will issue a court summons on' and put it 9 days from when you post it.

[p4nd0rasb0x]

Thanks for the replies.This was the 2nd bounced cheque from him, its actually wages that were due back in Nov 2007. I represented the 2nd chq yesterday to the bank. I have also downloaded small claim court forms and written to him via recorded delivery stating that I expect to be paid by tues of next week or im starting proceedings... watch this space !!

[mooreda]

Is the amount more than £750? If so, threaten to issue a statutory demand which is the commencement of the bankruptcy procedure. This is more powerful and is usually issued for amounts owing of £5000 or more but actually £750 is the minimum. See

 

Statutory Demand Issues - Free Statutory information

[p4nd0rasb0x]

Is the amount more than £750? If so, threaten to issue a statutory demand which is the commencement of the bankruptcy procedure. This is more powerful and is usually issued for amounts owing of £5000 or more but actually £750 is the minimum. See

 

Statutory Demand Issues - Free Statutory information

 

 

No, its less than that, but useful to know thanks

Hes now reached the time limit i gave him and hes made no attempt to replace the bounced chq or pay the amount to me by BACs. So if the represented cheque bounces too ill be starting the small claims proceeding on Thursday.

[Weird Al Yankovic]

Is the amount more than £750? If so, threaten to issue a statutory demand which is the commencement of the bankruptcy procedure. This is more powerful and is usually issued for amounts owing of £5000 or more but actually £750 is the minimum. See

 

Statutory Demand Issues - Free Statutory information

 

Yes. And it has the added benefit of costing nothing.

 

However, it is pretty useless if one is not prepared to follow through with it. And it would be costly if you did. And again useless if successful because the person, business is bankrupt/wound up and you would be very unlikely to get anything.

(A worker owed wages would be very near the bottom of the list)

 

Also, a court may not take too kind to this action being taken without other ways being attempted first.

[patdavies]

(A worker owed wages would be very near the bottom of the list)

 

 

As far as wages is concerned, an employee is a preferential creditor - thus near the top of the list; ahead of secured creditors

 

The Crown is no longer a preferential creditor (since the Enterprise Act 2002)

[p4nd0rasb0x]

Interesting info, thanks everyone.

I rec'd a replacement cheque this morning so if the one i represented doesnt clear (which is likely) then ill bank the new one......... ill get my wages if its the last thing i do -

[Conniff]

This is costing him every time you present, and if it is a business cheque then it is costing more than the charges added to a personal account. If he hasn't got the money why don't he come out and say so and ask your patience for a few weeks instead of making himself look not only a fool, but is risking a ccj against his business and that wont go down well with the banks. They could even close the account without further notice.

[p4nd0rasb0x]

This is costing him every time you present, and if it is a business cheque then it is costing more than the charges added to a personal account. If he hasn't got the money why don't he come out and say so and ask your patience for a few weeks instead of making himself look not only a fool, but is risking a ccj against his business and that wont go down well with the banks. They could even close the account without further notice.

 

 

Ive got no idea why he doesnt come clean with me. All i want is my wages, and if he hasnt got it now then if he told me when hes likely to have it id be happy to wait... the mans an idiot !

[Weird Al Yankovic]

As far as wages is concerned, an employee is a preferential creditor - thus near the top of the list; ahead of secured creditors

 

The Crown is no longer a preferential creditor (since the Enterprise Act 2002)

 

 

Actually a secured creditor is ahead of a worker (preferential creditor) in an insolvency.

 

Plus the practitioner is ahead of them all and gets paid first.

 

Only the unsecured and 'floaters' are below the worker, hence, why I stated very near the bottom.

 

Once the insolvency fees are paid and secured creditors then one is able to realise how low the worker ranks.

[patdavies]

Here's the Wikipedia entry, I'll let people judge for themselves

[Goldlady]

Er - if a company goes into formal liquidation the staff are paid by the DTI for redundancy, unpaid wages and holiday pay (up to certain limits) and notice pay.

[Weird Al Yankovic]

Here's the Wikipedia entry, I'll let people judge for themselves

 

From your link-

 

in the United Kingdom preferential creditors have priority over secured creditors whose security is in the nature of a floating charge, but creditors with fixed security take ahead of the preferential creditors generally.

 

Note '...have priority over secured creditors whose security is in the nature of a floating charge...' '...but creditors with fixed security take ahead of the preferential creditors generally.'

 

Secured creditors can be in two categories depending on their charge, as stated above, 'floaters' or 'fixed.'

I already mentioned 'floaters' were below a worker.

However, a secured creditor (with a fixed charge) is above a preferential creditor, such as a worker.

Yes, let's do let people judge for themselves.

[Weird Al Yankovic]

Er - if a company goes into formal liquidation the staff are paid by the DTI for redundancy, unpaid wages and holiday pay (up to certain limits) and notice pay.

 

'Subject to conditions' are very important terms you failed to mention.

 

Somebody owed a few months pay of a considerable amount will hardly likely get what they are due from the DTI.

 

Therefore they will have to become a preferential creditor, probably for the larger balance, for any hope of getting what they are owed.

[Goldlady]

Er - that's what 'up to certain limits' was there for! I believe it is 8 weeks unpaid wages and a year's holiday entitlement.

[Conniff]

Are you running a book on these cheques clearing P4?

[p4nd0rasb0x]

Are you running a book on these cheques clearing P4?

No but its a great idea..

What i had thought of doing is waiting for this current one to clear (if it does) then paying in the 2nd one aswell, and letting him chase me for the money !! He can wait 3 months the same as Ive had to...

Anyone know what kind of position id put myself in if i banked both cheques ??

[Conniff]

By waiting until one has cleared and then presenting another to which you wouldn't be entitled would be naughty, but now that you have represented the first one there is nothing to stop you presenting this second one as well so they are both in the system and then paying back if they both clear.

[p4nd0rasb0x]

By waiting until one has cleared and then presenting another to which you wouldn't be entitled would be naughty, but now that you have represented the first one there is nothing to stop you presenting this second one as well so they are both in the system and then paying back if they both clear.

 

 

It would be a revenge reaction if I did.. Im going to wait and see if first one clears before I do anything else. He still owes me holiday pay and sick pay, so that'll be another battle trying to get that out of him. !

 

PS) I bet ya 50p that the chq bounces -

[Conniff]

Are you saying he also owes you holiday and sick pay on top of the wages cheques that you are trying to cash at present? If that is so, then it is money that you are entitled to so there is nothing wrong with presenting both of them.

 

Be sure the cheques have cleared 5 or 6 days before you withdraw though P4. Some banks credit the funds immediately and then take them back if the cheque bounces. You wouldn't want that as it could make you go overdrawn and then you would be paying out for his failure.

 

(I'll have 50p as well but this is one bet I wouldn't mind losing)

P.S. Who will be paying our winnings if it does bounce?

[p4nd0rasb0x]

Are you saying he also owes you holiday and sick pay on top of the wages cheques that you are trying to cash at present? If that is so, then it is money that you are entitled to so there is nothing wrong with presenting both of them.

 

Be sure the cheques have cleared 5 or 6 days before you withdraw though P4. Some banks credit the funds immediately and then take them back if the cheque bounces. You wouldn't want that as it could make you go overdrawn and then you would be paying out for his failure.

 

(I'll have 50p as well but this is one bet I wouldn't mind losing)

P.S. Who will be paying our winnings if it does bounce?

 

 

Well the problem there is that he hasnt (nor his accountant) ever bothered getting back to me to let me know what im entitled to, despite several calls - I may just bank the second chq, find out the amount he owes then return the remainder to him..

[Guest wino]

I would just keep the money unless he asks for it back. Then give it back only if your not entitled to it. You might be owed more. Try and work out the amounts you are owed.

[Weird Al Yankovic]

Er - that's what 'up to certain limits' was there for! I believe it is 8 weeks unpaid wages and a year's holiday entitlement.

 

Er-if you read the DTI website it clearly states those may be entitled 'subject to conditions' and up to 'limits.'

 

Again, you failed to mention 'subject to conditions' as not everybody is entitled to this.

 

Example, Luton Town Football Club has/did not pay the staff for 6 months.

 

Should they now go bust then, certainly the players, will get next to nothing from the DTI to what they should get.

 

Why do you think there is provision in an insolvency for preferential creditors, including workers, despite the DTI?

 

It is because it is needed.