End of the acceptance of cheques

[BOF1951]

Folks,

 

Has anyone else noticed that the number of places where you can write a cheque for goods or services are rapidly reducing?

 

I had my card ‘skimmed’ and it was used all across London, once whilst I was actually in the bank trying to convince the clerk that neither I or my wife had used the card to pay for something at a Comet store, nor had we withdrawn a large amount of cash out of the account at £50 per time, from various locations, over the previous three days. Whilst she had my account details on her screen, up popped another £50 withdrawal against my card, which at that specific moment in time, was in her hand! I eventually got my money back.

 

Anyway, because of that I prefer to write a cheque. Two retailers who used to accept cheques no longer do so as of the 1st January. Both have said, independently, that the banks will bounce a cheque if there are insufficient funds in the account to cover it, even if it is guaranteed by a cheque guarantee card.

 

So what is the point of having a cheque guarantee card if the banks will not honour it?

 

The manager of one of these retailers told me that not only was it for the above reasons, but also due to the banks taking anything up to 20 working days to process and clear an honoured cheque.

 

Can the banks legally refuse to honour a cheque that is guaranteed by a card they issued for that specific purpose?

 

Regards,

Chris

[Guest NATTIE]

What a load of total and utter rubbish the shop is telling you. If it is bounced it is unlikely to be due to the chq guarantee card but maybe the wrong card or another technicality. Clearing a cheque taking 20 days. utter nonsense. Maybe the next reason for not taking cheques will be the cost of a pen?

[BOF1951]

So who is actually standing down wind of a dairy farm when telling me this?

 

Is it the retailers who are using the banks as an excuse because it takes longer to get our money from a cheque than the 2 days it takes from ‘chip & pin’?

 

Or,

 

Is it the banks trying to stop people using cheques for reasons known only to them?

 

I accept it is a rather academic question because either way, I cannot write a cheque for something and that is my preferred method of payment. It just feels like another ‘choice’ being taken away and I am being forced to go down a route I do not want to go down because some bank or business has decided it is in ‘their’ interest to make me do so, not mine.

 

Get me out of here!

 

Cheers,

Chris

[meagain]

Random theory:

 

Write the cheque, write your name and address on a separate slip of paper, hand over both, if they say they don't accept it refuse to take it back off them and leave. You will not have committed the crime of making off without payment, since this requires both dishonesty (you left contact details) and not paying them (you clearly gave them a cheque).

 

Not guaranteed to work, and your custom at the outlet may no longer be welcome.

[JonCris]

What a load of total and utter rubbish the shop is telling you. If it is bounced it is unlikely to be due to the chq guarantee card but maybe the wrong card or another technicality. Clearing a cheque taking 20 days. utter nonsense. Maybe the next reason for not taking cheques will be the cost of a pen?

 

Hi natweststaffmember

 

The banks do including the one you work for frequently bounce cheques covered by a cheque guarantee card............even when the card is perfectly valid & the cheque has been correctly filled in.

 

If it suits them they ignore the rules by making spurious claims such as "you where not present at the time of the transaction" when you were & many more.

 

The OP is correct they want us to stop using cheques because it's much easier for the customer to prove fraud when their a signature involved. Not good for the banks

 

Also I note that, as I have been saying since their introduction, the wheels are coming off their much vaunted arguments about 'chip & pin'. Apparently the level of fraud is on the increase & consumers are finding it much more difficult to recover their losses because the banks refuse to believe them............now there's a surprise.

 

Also 20 days IS correct. It may have cleared but the bank can & do recall the cheque at anytime within that period

 

chip pin & run!

[Guest NATTIE]

joncris- the title of the thread is "The End of Cheques". The scenario of not accepting a cheque if it is guaranteed by a card is covered via the APACS website as to the rules of the cheque guarantee scheme. If the cheque is returned as is guaranteed any business can appeal to a bank for it to be paid as it has been guaranteed. Technicalities can include, cheque not signed in accordance with the mandate, not guaranteed as different card used to gaurantee it(ie switch card for account A used to guarantee cheque for account B or credit card used to guarantee cheque), words and figure do not agree, cheque not signed or cheque drawn on closed account.

 

With regards to clearing the cheque in 20 days(remember I am commenting on what I am reading on post 1) have you enjoyed the pleasure of a 20 day clearing cycle? I haven't on a sterling cheque drawn on a UK bank and that includes the Christmas period. I know your viewpoint on banks and you know mine. In regards to CHIP and PIN I am not in agreement with the comments but this is about cheques so let's agree to disagree. I would not want to be accused of being indoctrinated by the bank I work for.

 

Just for information Cheque useage has been going down since 1992 when it was at a peak- that is 13 years before the CHIP and PIN system was introduced. I think you will find people find it more convenient using a card for purchases than carrying around a cheque book.

[lickthewallfatboy]

simple solution-get all your friends to continually go into these stores which you know will refuse a cheque,load up with an absolute ton of goods,go the the checkout and when the colossal sum of money is totted up, present a cheque as payment.When they refuse to take your cheque,leave the lot and walk out.And have a laugh at the look on their faces

 

If this keeps getting done,they'll soon get the message.

[PhantomReclaimer]

Also I note that, as I have been saying since their introduction, the wheels are coming off their much vaunted arguments about 'chip & pin'. Apparently the level of fraud is on the increase & consumers are finding it much more difficult to recover their losses because the banks refuse to believe them............now there's a surprise.

 

It occured to me what it started that this "C&P" thing wasn't actually to reduce fraud but merely to reduce the banks exposure to the effects of it.

 

If someone uses your stolen or skimmed card with a false signature then, as long as you have been responsible in keeping your card safe, the loss is the banks problem as they have to show that you were careless to shift the loss back to you. If your PIN has been used then the burden of proof shifts to you from the outset and showing that it's wasn't your fault will be nigh on impossible because the standard reply from the bank will be that you must have revealed your number as that's the only way the transaction could have gone through.

 

Fraud levels will be shown to have declined after the introduction of "C&P" because, as far as I am aware, they are compiled from the banks losses only and not the actual number of instances of fraud or financial loss to customers. So, whether fraud has indeed been ruduced is not entirely clear.

 

P.

[JonCris]

natwestmember I don't care if the card is guaranteed by God what I say is correct & I have the correspondence to prove it! And it has nothing to do with technical errors, wrong card wrong account, not being part of the mandate; etc.

 

I have the grovelling apoligy from the bank to prove it.....problem is they went & did it to this person again within days of apoligising.......matters are in hand

 

The banks are making it more & more difficult to transact business using cheques & signatures & the reasons are obvious......it's too easy for the client to prove they didn't do it

 

As for C&P more & more evidence is becoming available that it isn't the marvel they claim. In fact it's worse for the consumer because they have greater difficulty convincing their banks that they didn't use it & if they don't accept the fraud happened then they don't have to include in their figures.

 

It has even proved difficult for those who cards have been used overseas when they have never left these shores. Also at the point when the bank concede it can take ages (1 month) for the money to be refunded.

 

As for what I think about the money lenders.......too right!.............but I somehow don't think I'm alone here

 

Almost forgot UK cheque paid into UK bank account........client repeatedly told cleared for the next 21 days.......client draws against cleared cheque........21 days later cheque is returned bounced.......bank excuses awaited

[Guest NATTIE]

joncris- Which bank was this(i am interested to know)? Maybe we have a Bank Worker from that bank on site who can explain it.

[JonCris]

natweststaffmember

 

Let me just say the Corre I refer to comes from somewhere in.................Wimbledon

[Guest NATTIE]

I'll PM you