If i deposited a cheque and after 5 days the bank clears it and pays the money into my account and then after i drew the money decides that the cheque is invalid. Are they allowed to take the money from my account even though they were supposed to check it in the 5 day clearing period?
2006-07-10 17:33:39 · 11 answers · asked by pete 3 in Business & Finance ➔ Other - Business & Finance
The bank told me it would be cleared after 5 days and I drew the money after 8 days at the same bank that I deposited it at.
2006-07-10 18:01:39 · update #1
The bank got full rights to take there money back even if the money is deposited tentatively in absence of clearance.But most of the banks dont allow clearance till the cheque is cleared .But if u had withdrawn money that bank deposited for uncleared cheque , u got no right to retain that.
2006-07-10 17:39:58 · answer #1 · answered by chdman 3 · 0⤊ 0⤋
The problem is the antiquated clearing system.
My Bank gives me the value of any cheques I deposit on day 1. The caviat is that the cheque may not be paid. So, although I have the money and can earn interest on it straight away, the Bank are still cashing the cheque through the system.
So, if I pay a cheque in on a monday, it will reach the other bank by Wednesday. The other bank may want to give their customer another day to pay in funds to cover, but if by Thursday this is not done, they can return the cheque.
Then the system gets old fashioned! Basically the other Bank send the cheque back in the post! And if it is delayed, you get what happened in your circumstances.
The only way to get around this is for banks to spend money on a more effective system, but don't hold your breathe for that!
2006-07-11 05:23:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes they can do that and actually the number of days depends on where the check is drawn on. I live in MN and if one of my customers (I work at a bank) deposits a large check from New York it would be a 5-11 day hold depending on the customers history with the First $100 available UNLESS it is a new account then no money is available and up to an 11 day hold. If the customer deposited a check drawn on another bank in MN then it would only be a 2 day hold unless they have a history of negative balances, unpaid checks and returned deposits then it could be more. They are allowed to take the money from your account. Why should you get the money for the check if they don't?
2006-07-11 00:45:05 · answer #3 · answered by missy55072 3 · 0⤊ 0⤋
As you are spelling it 'Cheque' I 'll assume you are in the UK, not US.
Firstly how much was the cheque for as this makes a difference. So long as it was 5 working days you should have been ok, unless it turned out the cheque was forged etc. (What was the reason for the cheque bouncing? Refer to drawer / payment countermanded??)
You can have such a thing as a 'late return' when the bank that actually bounces it back to yours doesnt tell your bank they're doing it and just posts it back to them, on the basis they do it on the day they first see it (day three) and that your Bank will get it back on day four or day 5 at the latest.
If they have allowed a return on your account after that with no good reason you are entitled to an explanation.
2006-07-11 02:32:18 · answer #4 · answered by 'Dr Greene' 7 · 0⤊ 0⤋
Unfortunately the simple answer is yes - this is a problem that occurs quite regularly but the banking system provides no idemnity for it's failures to conduct appropriate checks on cheque transitions - so you bear the ultimate responsibility.
This is a really common scam too - many people find themselves in your shoes, there have been articles on this in most of the national press money pages.
2006-07-11 07:54:18 · answer #5 · answered by nkellingley@btinternet.com 5 · 0⤊ 0⤋
Sadly, yes, the bank is perfectly within its rights. Morally corrupt, though. The term "clearing the cheque" refers to the bank ascertaining that funds are available, and making those funds available to you.
2006-07-11 01:49:38 · answer #6 · answered by Lick_My_Toad 5 · 0⤊ 0⤋
Same question but it was 7 days to clear,also prior to this I had to make arrangements for a large amount to be withdrawn b4,so that I could recieve over the counter on the said day of clearance. 7th day chq was cleared,the amount arranged was withdrawn. Next day I went to withdraw another sum,a much smaller sum,and weas told the chq has bounced!,,,How is that my responsibility,as the bank cleared me the money on the 7th day....So why did,nt the bank stopped the chq,b4 I was allowed to withdraw on the 7th day..There4 its there error,and responsibility.Iv been a victim of someones else criminal mind..On DLA & benefits for myself & young son,cannot,& refuse to pay back,as I surrended the chq in good faith for clearance,innocent of the the EVIL man in question who cannot be found now!
2006-07-16 05:49:57 · answer #7 · answered by joanne w 1 · 0⤊ 0⤋
sure the banks can take cheque payment's back, keep away from the person who gave you the cheque in the first place.
2006-07-11 02:18:06 · answer #8 · answered by angie n 4 · 0⤊ 0⤋
The only way that could happens is probably if there has been a stop payment order on the check that you deposited.
2006-07-11 00:36:56 · answer #9 · answered by ybzcarlos1 4 · 0⤊ 0⤋
Don't know, but I do know that my bank makes me wait TEN days not five... Check with your bank to be sure.
2006-07-11 00:36:20 · answer #10 · answered by barbaradjt 5 · 0⤊ 0⤋