2007-03-12 20:17:38 · 4 answers · asked by yp_des_coventry 1 in Business & Finance ➔ Credit
It is indeed illegal to write a cheque knowing that there are not enough funds to cover it once it's drawn upon.
(gaining pecuniary advantage by deception)
2007-03-12 20:21:54 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I am not 100% certain on UK laws, but I found this online: "The Unfair Terms in Consumer Contracts Regulations 1999 say that all penalty charges have to reflect the cost of administering them. Banks are not allowed to make a profit from your being overdrawn. If they do, then you can argue it is illegal."
More specifically, you have a right to collect the money, but the UK does not have the right to penalize your employer for writing a bad check for any cost that would make them a profit. If you are looking to get your money, threaten to file suit against your employer if they refuse to pay. But if you are looking to sting your employer, find a different way -- the most you can get out of them is court costs plus the value of the cheque. The most your bank can get from them would be the value of the cheque and a small processing fee.
2007-03-13 03:34:59 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Since its your employer whos not paid you, you can first ask him to pay you again, then if he doesnt, put in a grievance, following that you can threaten to take him to an industrial tribunal and if that doesnt work actually put in a claim to the tribunal. If you get the CAB to help you, it wont cost anything, alternatively you can sue him in the court, but this will have an initial payout and because you can use the other route, the judge may refuse to hear the case.
If someone issues a cheque knowing there will be insufficient funds to pay its, its fraud and they can be prosecuted, so you could even get the police involved. However, the friendly approach is better cos he could just sack you for some other 'reason' if he thinks youre 'making trouble'.
2007-03-13 03:25:57 · answer #3 · answered by jeanimus 7 · 0⤊ 0⤋
I had the same problem take the cheque back and ask for cash instead and if you get any bank charges the company should pay for them also.
2007-03-13 03:29:34 · answer #4 · answered by lummy1986 1 · 0⤊ 0⤋