Should you cacel a cheque or say its lost?

[1stlifeline]

My broter has sent a cheque to someone and put the wrong amount on it. He has not deducted a refund and so the cheque is for more than it should be. He has rung the company to tell them not to bank the cheque and they have agreed not to until he sends them another with the correct amount. He is dubious about leaving the first cheque 'live' and said he would go to the bank to cancel it.

Im sure I read that there was a charge for cancelling a cheque and that you are better saying that it has got lost in the post. Is this correct or is it simply a case of asking the bank to stop it?

Thanks.

[patdavies]

Even if it were lost, the bank will still charge (about £10) to place a stop on it.

 

So he might as well be truthful and just stop it.

 

Alternatively, and cheaper, would be to request the return of the old/wrong cheque.

[MrShed]

I believe it was on MSE forums where several bank employees stated that they waive the charge if the cheque is lost...

[CAGisforME]

I am almost an ex-bank-employee. If a cheque is lost there is NO CHARGE to stop it.

 

This is also the case if the cheque or chequebook has been stolen.

 

Generally the operative has the discretion to add a charge (normally £10) to stop a cheque by request. (For instance if you have written it for too much or have "changed your mind")

 

I wold counsel you to ensure that you have enough money in the account to cover it momentarily. The reason being is that sometimes if the cheque is cashed (but has been stopped) they system FIRST recognises the debit to your account. The stop is often not applied until later in the day.

 

Whilst this should not affect you if you have the funds, it may affect your ability to draw funds during the time the cheque shows as a debit and until the cheque amount has been refunded to your account.

 

Hope that helps.

[MrShed]

CIFM, what would the position be if you have said it is lost and someone then tries to draw on it? Would they be investigated for fraud?

[CAGisforME]

Good Point, but I think it fairly unlikely.

 

Generally,

 

Once it's stopped, it's just that. Stopped. If it was banked it's unlikely much would happen. However, that IS a possibility.

 

Not one I would consider worrying about - but that's me I guess.

 

This is, from my perspective, how the bank would see it.

 

At the end of the day something that is lost can be found and therefore there would be no reason to investigate. If the person to whom the cheque was made out (or the Company) pays a cheque into an account in their name, with a valid signature on it, there is no fraud. Just circumstance.

 

(Think of it as if it was you. You get a cheque, you bank it, the person reports it lost and stops it. YOU haven't done anything, simply banked a cheque in your name.)

 

They get a letter saying the cheque won't be paid and told to contact the drawer.

 

 

However a cheque that has been altered, or that has a signature that doesn't meet that held from the bank, or being paid in to an account that it hadn't been written to, that would be looked into, especially if the cheque or chequebook had been reported lost.

 

In this case, having reviewed the OPs comments I would say that it would be worth the risk of a cheque stopping charge in order to ensure that the cheque didn't go through, if it was for a fair bit of money.

 

I would also counsel that MULTIPLE "lost" cheques or "stolen" cheques do mark the account for "special attention".

[MrShed]

Fair enough, was just curious thanks for the answer!

[CAGisforME]

I would also ike to clarify that I do not ADVOCATE telling the bank porkies, but I was clarifying the fact that there is no charge for stopping a lost or stolen cheque - as opposed to a request to stop which is chargeable at the Bank's discretion.

 

[CAGisforME]

I know you were MrS

 

Thanks for prompting me to clarify