Cheque Guarantee cards

[spoutuk]

thanks for that, what about using your card when you have no money in the account. I used my guantee card with a cheque and they charged me £35 and heres another one: i put £5 petrol in my car knowing at the time i had £5 in there took two weeks to come out so it cost me £35 agin for using my card is it better to ring then write as I prefer to write then I can keep copies.

[BankFodder]

Penalty charges are penalty charges. If they are excessive then they are unlawful.

On the other hand, at some pint someone might decide that by clearly spending money fom an empty account that you are being dishonest about it which could lead to something a bit serious.

 

You need to realise that if you are going to take on the bank then you need to be vey careful about your own behaviour.

 

lets face it, we should all try to run our affairs correctly - buit the banks should try to run their's correctly as well.

[BankFodder]

Better to ring and then confirm in writing

[spoutuk]

anyway i lost my card anyway but u expect that they would take the money out after 3 days not 2 weeks

[Robertxc]

Hang on! I don't agree with your last point Bankfodder. How can you spend money from an empty account without the bank's cooperation? I think it's safe to say that no money leaves the bank under any circumstances without the bank's permission (except maybe during an armed robbery). They can hardly say it was 'unauthorised' if they released the money. Nobody is forcing them to let you go over your overdraft, it can only happen with their permission.

[BankFodder]

Hang on! I don't agree with your last point Bankfodder. How can you spend money from an empty account without the bank's cooperation?

 

When a cheque is drawn in payment of a bill and that cheque is backed by a cheque guarantee card, then the Bank is bound to pay regardless of the lack of funds n the account.

[Robertxc]

Yes, but bound by whom? I'm not certain, but I reckon if you check the small print it will say somewhere that the guarantee part is actually discretionary. It's difficult to imagine the banks allowing themselves to get into a situation where they are compelled to pay something, regardless of how much is in the account - especially since it's their contract you're signing in the first place.

[BankFodder]

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http://www.apacs.org.uk/payment_options/documents/cheque_card.pdf

 

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[Robertxc]

Hmmmm, very interesting. I stand corrected! I suppose there would not be much point in calling it a cheque guarantee card if it was not properly guaranteed. What happens if the bank writes to you and cancels your card - would they still honour a cheque written with it?

[BankFodder]

I expect that it would be honoured. I expect that the bank would consider it to be very important to its reputation to be seen to be honouring the scheme. Further more I expect that it would be considered to be encumbent upon the bank to esnsure that its instruction no longer to use the card was obeyed. To do otherwise would be to discredit the scheme and would undermine business confidence.

However I expect that the brown stuff would be all over the place and that there would be a chance of the police being called in which might, as I suggested in my earlier post "lead to something a bit more serious".

[Vampyra]

So if as you say the banks are expected to pay a guarenteed cheque - is it correct that they dont and send it back for re-submission and charge you, of course?

[tgsh2006]

A lot of banks do 'try it on' with regards to the cheque guarantee scheme. Quite often banks will bounce cheques even though they are guaranteed; only paying the cheque when the payee theatens action of one sort or another!

 

Using a cheque card knowing funds are not available is a criminal offence; obtaining a pecuinary advantage by deception. There can also be offences contrary to the Theft Act 1978 (evading a liability etc). Main case law on the subject is Metropolitan Police Commissioner v Charles (1977). That being said there is usually more chance of hell freezing over than any criminal proceedings ever being taken as a result of such use of a cheque card.

[BankFodder]

need to show dishonesty.

[polar_b]

What if you write a cheque on Friday with a cheque guarantee card knowing you will be paid on Wednesday next week? (cheques take 3-4 days to clear). Is this a criminal offence as well?

[richardc]

I believe technically yes. You did not have funds sufficient to cover the cheque when you issued it. In the US is called 'kiting a cheque' and is a criminal offence.

[Mal]

But..... Are we not all in this situation because of charges? So if the Bank had not taken all out moneyt there would be funds available?

 

Mal

[richardc]

Yes but the banks don't see it that way.

[spoutuk]

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