Does Anybody Know Diffrent ?

[Guest HUSBANDKHAN]

iF YOU PAY A CHEQUE INTO THE HSBC YOU CAN DRAW AGAINST IT THE FOLLOWING DAY VIA CASH MACHINE ? ALSO WHATEVER YOUR AVAILABLE BALANCE IS HSBC LETS YOU OVERDRAW BY UPTO £50 EXTRA ? AGAIN THROUGH THE CASH MACHINE ? IS THIS SO THAT PENALTY CHARGES CAN BE APPLIED AT THE COST OF THE CONSUMER ? ALSO IF YOUR SAVER PLUS HAS A BALANCE OF 0.10P THEN YOU CAN DRAW £10 FROM A CASH MACHINE. THIS ONE USED TO WORK UNTIL I CHANGED BANKS. IS THIS AGAIN TO HIT CUSTOMRS WITH PENALTY CHRGES ?

[Whisperwolf]

iF YOU PAY A CHEQUE INTO THE HSBC YOU CAN DRAW AGAINST IT THE FOLLOWING DAY VIA CASH MACHINE ? ALSO WHATEVER YOUR AVAILABLE BALANCE IS HSBC LETS YOU OVERDRAW BY UPTO £50 EXTRA ? AGAIN THROUGH THE CASH MACHINE ? IS THIS SO THAT PENALTY CHARGES CAN BE APPLIED AT THE COST OF THE CONSUMER ? ALSO IF YOUR SAVER PLUS HAS A BALANCE OF 0.10P THEN YOU CAN DRAW £10 FROM A CASH MACHINE. THIS ONE USED TO WORK UNTIL I CHANGED BANKS. IS THIS AGAIN TO HIT CUSTOMRS WITH PENALTY CHRGES ?

 

Firstly, can I ask you NOT to post entirely in capital letters. In internet forums, that's regarded as shouting, and also regarded as somewhat rude. Many times, people who do that are regarded as "trolls", i.e. users who post rubbish just to be seen, or underage teens who don't yet know where the caps lock key is and are too "leet" to find it. Wouldn't want anyone putting you into either category, would we?

 

Okay, to address your comments. Plain and simply, it's a grey area, which would most likely be addressed in the small print regarding your account. Get out a magnifying glass and read up.

 

In Ontario, Canada, when you deposit a cheque the bank (and I'm talking about TD Canada Trust here; other banks might have different policies) allows you to draw up to 40% of it immediately. The rest of the balance is available after two to three days, which is the average cheque clearance time in Canada. Should the cheque "bounce" charges are applied, but at a fairer rate than in the UK. The small print to a TD Canada Trust account calls uncleared cheques "an advance on the promisary note" and states clearly that drawing against an uncleared cheque is a risk the account holder takes, since the bank cannot be responsible for keeping a customers promise, which I think is fair enough. In other words, if you don't trust that the cheque will be honoured, but you draw against it anyway, you accept the inherent risk that if it bounces you will incur charges.

 

So no, I doubt that it is a particular trick by the bank to make money, but your best place to confirm this is to read the small print - all of it - to your particular account and see if that specific item is addressed there.

 

Happy hunting!

[bigboyprice69]

I beg to differ, for 10 years until very recently I was paid by monthly by cheque and while I could use my switch, up to a limit of about £200 against he uncleared cheque, I could not withdraw cash from an ATM. It did however show against my balance for the payment of DD's & SO's.

 

TBH, you'd be a fool to drawn against an uncleared cheque from someone you didn't trust and which could possibly bounce, so I don't completely understand how this is another money making scheme by the bank when they're leaving the decision to you as to whether you consider the cheque safe to draw against or not.

[Whisperwolf]

I beg to differ, for 10 years until very recently I was paid by monthly by cheque and while I could use my switch, up to a limit of about £200 against he uncleared cheque, I could not withdraw cash from an ATM. It did however show against my balance for the payment of DD's & SO's.

 

TBH, you'd be a fool to drawn against an uncleared cheque from someone you didn't trust and which could possibly bounce, so I don't completely understand how this is another money making scheme by the bank when they're leaving the decision to you as to whether you consider the cheque safe to draw against or not.

 

 

Precisely. The bank is absolving itself of the responsibility. If you choose to draw against an uncleared cheque, then it's your risk. If the cheque subsequently bounces, you will incur charges. This is very likely to be in the small print, someplace. It might be a little confusing to keep track of, if you have a lot of cheque activity, but it's not a con.

[bigboyprice69]

It's all coming back to me now,I'm sure it used to be on the back of the old style statements before they changed to the A4 printouts, it said you could drawn but if the cheque bounced the bank would not be responsible for any losses or charges incurred, or words to that effect.

[Guest HUSBANDKHAN]

That was then. That applied to cheques paid out on uncleared effects/ debit card transactions. This is diffrent !

[Guest NATTIE]

A one line answer is not good enough, please explain more as to why it is different

[Guest HUSBANDKHAN]

If they were giving you a authorised overdraft then they would notify you etc. This is not that is it ?

[bigboyprice69]

No, this is now, just because I said that is where is WAS printed it doesn't mean that it isn't still the case.

 

If you read my first post properly I said until very recently, (up to the last month or so ago infact) I was paid by cheque, the way uncleared cheques are handled hasn't changed over the whole 10 years I have been paid this way.

 

So are you saying this is something that has changed over the last few weeks ???

[Whisperwolf]

That was then. That applied to cheques paid out on uncleared effects/ debit card transactions. This is diffrent !

 

I fail to see why. You mentioned two points in your original posting.

 

1) If you pay a cheque in, the next day it can be drawn on (with certain accounts) - an explanation has been provided for the context of this.

 

2) You can overdraw by £50 at any time - again, this is only certain accounts, and again it's a "buffer zone" the bank provides, which yes it does charge for because it's only supposed to be a kind of "crisis loan"

 

If you can post a proper reason why this thread's questions have not been satisfactorily answered, or why the answers can't be found in the small print of your account details, by all means post them, but if you just post something like this then that is trolling, and I will close the thread.

 

The forums are for serious discussion, not trolling. If you have other questions, ask them, but we addressed the original question, and showed that it was not a con. To try and keep the thread going with meaningless one liners IS trolling, and can lead to your ability on the forums to be restricted or withdrawn. Please respect other members by posting constructively, and remember, you're a guest here - don't abuse that priviledge, or it may be withdrawn.

[gizmo111]

more nurofen needed - either he is one wave short of a shipwreck or I am?

[callumsgran]

Nice one giz! ROFLMFAO