I dated a cheque for 27th July but is was paid in early and cleared, leaving me overdrawn, can my bank do this

Question

My bank have said that they can clear a cheque before its date and that they can also now charge me for going overdrawn. I got paid the next day hence why I dated the cheque for the 27th. Where do I stand?

Answer 1

I think you will find that the terms on the cheque are a legal contract! as in the amount and the date, it could be argued that they also have the right to alter the amount (which is fraud) i would inform the bank in writing that they have not observed your terms and conditions relating to this issue! also state that if they fail to resolve this issue you will write to their chairman at his private address (from companies house register) making him aware of their sharp practise, also you will send letters of complaint to the Banking Ombudsman (www.financial-ombudsman.org.uk) and the editor of the money section of the Times, (newspaper) send these letters using a manually written certificate of postage and an ordinary stamp on it, (this is important) if they fail to respond you can prove they have a negative attitude to the issue, (important in civil law) also ask for compensation for malpractice.

Add

If you set up a direct debit or standing order with your bank to pay on the 27th, the bank does not have the right to pay the monies prior to this date, and charge you O/D fees for this, it has countermanded your instructions, this would be a breach of contract, likewise if your paycheck is credited to your account on the 25th it is reasonable to assume that funding is available to cover this payment, and not fraudulent as your instructions are for payment after funds are available to meet this, the same applies to your cheque.

Answer 2

As far as i know date only matters if it something like a year out or the month is wrong-for example you dated the cheque 27/7/07 instead of 2008, the bank will normally question this and will not bank the cheque. If you send a cheque with the incorrect date i.e. you sent cheque on 25th but dated the 27th instead-this will not make a difference to the bank. They will still bank the cheque but obviously this meant that you went overdrawn.

I think if you were to ring head of office or even speak to the bank manager he/she maybe able to help you-explain you dated it the 27th payday is the following day!

I HAVE had a charge reversed in the part due to a misunderstanding on my part and the bank were very helpful and reversed it. You would have to grovel though.

Answer 3

you should have arranged with the person you gave the cheque to not to pay it in until the 27th, if the bank is given a cheque dated a week earlier than it arrives at the bank then of course they can pay out early, the date number on the cheque is bullocks.

Answer 4

You stand overdrawn until the 27th. If the cheques is dated the 27th. the money will not be avilable to you until then

Answer 5

Post dating a cheque does not stop the bank processing it if it has been deposited.

A cheque is a form of money and if write one you are as good as saying the money is availiable there and then.

Your bank are quite right to have cashed the cheque and put you overdrawn and then go on and charge you for this.

Did you also know that by writing a cheque whether or not you post date the cheque and the funds are not availiable you are actually committing fraud.

I know this is not the answer you were hoping for but from your experience I doubt that you will post date another cheque

Answer 6

as it is technically illegal to write a cheque, knowing you did not have the funds to cover it at the time you wrote it, I wouldnt go bleating too much about it if I was you.

As an aside, the banks do not check cheques (no pun intended), unless they are for large amounts.  I am secretary for an organisation and I recently got a new signature form returned because the bank had no record of one of my trustees, even though they had cashed a cheque for £4,000 she had signed only 2 weeks before.

If they don't check signature validity on cheques for 4,000 pound they most certainly are not going to query dates.

Answer 7

This happened to me to, and unfortunatly they are right, in future dont send the cheque so that it gets there before the date, cos they do bank cheques as soon as they are received.

Post dated cheques only work with friends and family, when you can tell them when to bank the cheque.