Cheque/Overdraft/Charges

[RossssyBoy]

Hi,

 

I hope someone will be able to help me on here. Its my first post and I'm in urgent need of help. I'm 20 years old and I'm about to start my own business.

 

I wrote a cheque on the 20th of February for £348.98, I sent it off and I got a letter from the bank saying cheque number 10008 had been rejected as I didnt have enough funds in my account. I was about 4.98 short.

 

The letter also stated "You may want to contact the person or organisation the payment should have been paid to so you can make other arrangements."

So firstly I assumed that the cheque would automatically be cancelled so I wrote another cheque and sent it off. I paid extra money in and the cheque cashed.

 

Problem solved, or so I thought. A week later I got another letter saying cheque number 10008 has been rejected as i didnt have enough funds in my account. Another £35 charge. I assumed this was some kind of error. I was angry about the charges but I decided it was pretty much my fault and the cheque was really important. I was embarrassed it hasnt cashed in the first place.

 

Yesterday morning I woke up to find a letter saying they had tried to cash the cheque AGAIN, although this time they has honored it, and honored 3 direct debits, now taking me -£550 on my account. So I've now had 3 charges of £35 and 1 charge of £28 due to me going into an unauthoried overdraft.

 

I assumed that once a cheque had been declined that it would be put in the bin and completely forgotten. Or does the organisation that it was written to get it back? or does the bank keep trying to process it until it cashes?

 

I'm going to the bank on monday to sort this out because now I've well overpaid. And I was wondering if you could give me any help or advice?

 

 

Thanks

 

RossssyBoy

[citizenB]

I think a cheque can be represented.

 

Hopefully, someone else will look in on you and be able to offer more advice.

[sallysas]

I've had cheques re-presented but not sure how this is possible. Presumably large organisations can bear the cost if it bounces more than once but small companies can't.