Uncleared funds? So where is the money?

[Its WAR]

On Wednesday, my son pays a £4000 cheque into A&L. He cant draw on it until it clears, so he writes me a cheque for £600 and I give him some cash to help him out. I wait for two days before banking his A&L cheque into my Abbey account on Fri afternoon, expecting his £4000 cheque to have cleared before the £600 cheque he wrotre me, reaches his account.

 

The £600 cheque bounces because the first cheque still hasnt cleared.

 

They refuse to refund the £25.

 

My question is: Where is the £4000? If it was taken out of the drawers account on Friday but hasnt been credited to my sons account on Tuesday when the £600 cheque is presented to his account.

Edited December 8, 2009 by Its WAR

[90DC]

Cheques usually have a clearing time mate. Can be as long as it takes but usually i'd say about a week maximum for that kind of fee.

[Twinkletoes31]

They like to claim interest on big cheques so they leave it sitting in their accounts longer. I had to wait nearly 2 weeks for a 22000 inheritance cheque to clear.

[Its WAR]

The £4000 cheque was written on an Abbey cheque and came out of the drawers account on midnight Sunday/Monday, it cleared today (Wed), so either Abbey or A&L have kept the money in limbo for two days. So whilst Santander have the money, my £600 cheque is bounced because they did not allow the £4000 cheque to be cleared.

 

Why would they bounce a cheque despite having the money? So they had a reason to also make bank charges now £100.

 

I am so angry. My attitude is now going to be to fight them back as far as my credit card debt without an enforceable agreement. The moral arguement flys out the window, I just have no regard for their attitude.

[barracad]

Why would they bounce a cheque despite having the money?

 

Because they don't really have the money - they invest your money in the overnight stock markets to make more money.

 

Other European countries can process cheques on the same day they are received, but seems that UK banks will use whatever tactics they can to increase profits.

[Its WAR]

Exactly. Santander have invested the money rather then credit the account on time, then they make charges.

[younganfree]

Don't want to be a party-pooper, but it usually takes 4 working days to clear a cheque - Friday to Wednesday sounds about right to me.