Litigation over bounced cheque

[Seminole]

Anyone have experience in litigating against their bank for reputational damage over an incorrectly bounced cheque?

 

Brief story. I issued a cheque for £20k as a deposit for a property bought under auction terms and conditions. Cheque seemed to clear my account but then was returned. More than sufficient funds in the account. Bank said that they didn't have an up to date cheque mandate for the account despite the fact that I submitted them for both my personal and business accounts. Bank made no effort to contact me by phone to confirm whether I had issued the cheque. I submitted a complaint on the day this happened (30 August) and sent two follow up reminders but so far I've had no acknowledgement, let alone an apology.

 

The bank weren't to know this but bouncing a cheque for a property purchase under auction terms and conditions is a breach of contract with potentially dire consequences. In the event I sorted this out but it has damaged my reputation. I have told the bank that I want a clear apology that I can show to the auctioneer and a sizable charitable donation in compensation. However, given that don't seem to give a damn about the matter and that I seem likely to have to either go to the Ombudsman or litigate, I was wondering if anyone had any thoughts on the way forward and specifically whether the legal option is worth considering.

[BazzaS]

Anyone have experience in litigating against their bank for reputational damage over an incorrectly bounced cheque?

 

Brief story. I issued a cheque for £20k as a deposit for a property bought under auction terms and conditions. Cheque seemed to clear my account but then was returned. More than sufficient funds in the account. Bank said that they didn't have an up to date cheque mandate for the account despite the fact that I submitted them for both my personal and business accounts. Bank made no effort to contact me by phone to confirm whether I had issued the cheque. I submitted a complaint on the day this happened (30 August) and sent two follow up reminders but so far I've had no acknowledgement, let alone an apology.

 

The bank weren't to know this but bouncing a cheque for a property purchase under auction terms and conditions is a breach of contract with potentially dire consequences. In the event I sorted this out but it has damaged my reputation. I have told the bank that I want a clear apology that I can show to the auctioneer and a sizable charitable donation in compensation. However, given that don't seem to give a damn about the matter and that I seem likely to have to either go to the Ombudsman or litigate, I was wondering if anyone had any thoughts on the way forward and specifically whether the legal option is worth considering.

 

http://www.independent.co.uk/news/uk/bounced-cheques-yield-libel-damages-1534499.html

 

You need advice on if the Defamation Act 2013 has substantially altered "The playing field"

[BankFodder]

This should help you

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?373594-Bounced-Cheque-Cause-for-Action-for-Damages-**-VICTORY-IS-MINE-**&highlight=madpriest

[Seminole]

This should help you

 

http://www.consumeractiongroup.co.uk/forum/showthread.php?373594-Bounced-Cheque-Cause-for-Action-for-Damages-**-VICTORY-IS-MINE-**&highlight=madpriest

 

Thanks Marc. Going to be a bit like the old days

[Seminole]

It's now just under 9 weeks and still no acknowledgement or reply from the bank.

 

I've had a quick look at BCOBS and I can see that there is a basis for a claim. I've also drafted an FOS complaint. In the bank charges days we didn't generally bother with the Ombudsman but I wonder whether it would be as well to make an Ombudsman complaint as well as drafting an LBA.

 

I think any particulars of claim are fairly straightforward and similar in outline to madpriest's although the specific issue is different and I don't know how to go about assessing the value of the claim.

[Seminole]

In the event I complained to the Ombudsman on the basis that life is too short.

 

The bank have provided what the Ombudsman has described as a 'fairly unusual' response admitting that they got it wrong and inviting me to make contact to discuss any 'impacts' their actions had.

 

In reality I didn't suffer any direct financial loss as I negotiated my way out of the situation they had created. I did spend a few £ writing to them and chasing them and no doubt they did do some reputational damage with the auctioneer. My question is whether it is reasonable to seek financial compensation in such circumstances or just move on. The cheques were for nearly £21k in total and the bank's actions technically placed me in breach of contract.

 

I would welcome any advice.