Thread: OT - please explain this cheque clearing and existing balance problem (a bit long)

I had a major argument in the bank today, and for the life of me I can't understand what has gone on. I have changed the exact figures and days, but the principle is the same

Day 1 - balance £1000
Day 2 - cheque 'x' credit £500 - balance £1500 (uncleared)
Day 3 - cashpoint £10 - balance £1490
Day 4 - cashpoint £50 - balance £1440
Day 5 - cheque 'x' bounced - balance £ 940 (cleared)
Day 6 - cheque 'x' represented -balance £1440 (uncleared)
Day 7 - cashpoint £40 - balance £1400
Day 9 - cheque 'x' bounced - balance £ 900 (cleared)
Day 9 - cheque 'y' credit £200 - Balance £1100 (uncleared)

So I should have £900 cleared and £1100 uncleared.

But, the cashpoint says I only have £150 available for withdrawal, while a mini statement says £900.

I went inside the bank, and the cashier checked and said that I did only have £150 for withdrawal and the £900 on the mini statement was uncleared.
I asked how this could be so, and she said it was to do with the bounced cheque being debited. I explained that I still had £900 in the account before paying in the cheque, but she insisted that I did not as the bounced cheque was uncleared!

I spoke with a more senior advisor, and she said the same thing. I asked her to ignore the bounced cheque completely, and tell me how much I had in my account before it was paid in, and she agreed it was £1000, and I had withdrawn £100 since. "So" I asked, "Why can't I withdraw my own money in my account? I am not drawing on an uncleared cheque, just my own money which was already there"
She replied, that I caould not draw my money because the cheque has bounced and needs to be debited. Plus The cheque I paid in today needs 3 days to clear! Arrrggggghhhh

I could not make her see that I already had £900 cleared funds. She insisted that it was the way Lloyds process their cheques and how thay credit and debit bounced cheques. All of which sounded like complete b*****ks to me.

She kindley let me withdraw £200, so it seems technically I was/am £50 overdrawn.

I subsequently checked online, and that tells me that I now have £700 uncleared, and £0 available balance

So the question is, WTF has gone on? Where is my money?

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I went through exactly the same scenario today - then at the end of the financial day they credit the account. In my opinion the bank has no right to withdraw money from the account because a cheque has bounced. While i appreciate they credit your account with an uncleared amount until the cheque you have presented has cleared but it is not as though they have given you cleared funds to use. The most annoying thing is they are blatently preventing you accessing your money - must be a sign of the times - but doesnt make it ethical nor legal i would have thought - what if you were paying by cheque and that bounced as a result - you would get charged - i would love to know if this is common among others!
Chris C in Swansea

Originally Posted by STAMPA36

I went through exactly the same scenario today - then at the end of the financial day they credit the account. In my opinion the bank has no right to withdraw money from the account because a cheque has bounced. While i appreciate they credit your account with an uncleared amount until the cheque you have presented has cleared but it is not as though they have given you cleared funds to use. The most annoying thing is they are blatently preventing you accessing your money - must be a sign of the times - but doesnt make it ethical nor legal i would have thought - what if you were paying by cheque and that bounced as a result - you would get charged - i would love to know if this is common among others!
Chris C in Swansea

The clearing system has changed since the OP has posted. The basic clearing cycle is effectively 3 working days but that is only the date when the cheque debits the payers account. In reality certainty of fate is quote as 10 straight days the likelihood though is that if the cheque has not been returned by the Friday if paid in on the monday then it is unlikely to be returned. The bank should debit the amount if it is bounced by the situation described by the OP did sound very strange.