Hi Everyone,

A quick question about writing cheques from a legal standpoint??? THIS
QUESTION IS FOR UNITED KINGDOM BANKING/LAW ONLY!!!!!!

I know this person who has a bank account that has no overdraft
facility. This person is really bad at handling money so to make ends
meet has started to persistantly write cheque guaranteed with a cheque
guarantee card taking him/her overdrawn (typicall 12 cheques per
month). Direct debits are rarely paid & so to my question.

What action can/will the bank take against this individual to stop
them using the remaining cheques? Is this a civil or criminal issue
(i.e could the bank have the police recover the chequebook from the
individual?) This person still has another 50 or so cheques that they
can write.

Also, how long will the bank wait before taking action (typically??)?

Thanks

David

"David Okopochini" wrote in message
om...
Hi Everyone,

A quick question about writing cheques from a legal standpoint??? THIS
QUESTION IS FOR UNITED KINGDOM BANKING/LAW ONLY!!!!!!

I know this person who has a bank account that has no overdraft
facility. This person is really bad at handling money so to make ends
meet has started to persistantly write cheque guaranteed with a cheque
guarantee card taking him/her overdrawn (typicall 12 cheques per
month). Direct debits are rarely paid & so to my question.

What action can/will the bank take against this individual to stop
them using the remaining cheques? Is this a civil or criminal issue
(i.e could the bank have the police recover the chequebook from the
individual?) This person still has another 50 or so cheques that they
can write.

Also, how long will the bank wait before taking action (typically??)?

From past experience I can say that they'll probably revoke his
switch/cheque guarantee card and issue him with just a standard ATM card,
such as a Solo card.

On 12/7/04 12:58, in article
, "Craig Lindley"
wrote:

"David Okopochini" wrote in message
om...

What action can/will the bank take against this individual to stop
them using the remaining cheques? Is this a civil or criminal issue
(i.e could the bank have the police recover the chequebook from the
individual?) This person still has another 50 or so cheques that they
can write.

Also, how long will the bank wait before taking action (typically??)?

From past experience I can say that they'll probably revoke his
switch/cheque guarantee card and issue him with just a standard ATM card,
such as a Solo card.


Unless the bank is at risk of never getting back the money, the police are
unlikely to be called, and the chequebook is unlikely to be reclaimed. But
the bank may add horrendous fees to the account and refuse to renew the
chard, and block the supply for further chequebooks.

If the bank suspects genuine fraud and is at risk of loss then the police
may be called. In either case, the account holder will doubtless be invited
to the bank for a discussion.

"David Okopochini" wrote in message
om...
Hi Everyone,

A quick question about writing cheques from a legal standpoint??? THIS
QUESTION IS FOR UNITED KINGDOM BANKING/LAW ONLY!!!!!!

I know this person who has a bank account that has no overdraft
facility. This person is really bad at handling money so to make ends
meet has started to persistantly write cheque guaranteed with a cheque
guarantee card taking him/her overdrawn (typicall 12 cheques per
month). Direct debits are rarely paid & so to my question.

What action can/will the bank take against this individual to stop
them using the remaining cheques? Is this a civil or criminal issue
(i.e could the bank have the police recover the chequebook from the
individual?) This person still has another 50 or so cheques that they
can write.

I know of a case where a woman wrote a series of £50 card-guaranteed cheques totalling a £900 single
payment on an account that was already about £10-£20 overdrawn (unauthorised). This little spending
spree also consumed all cheques left in the cheque book - so the prospect of more such cheques being
drawn did not arise.

1. The bank honoured the cheques.
2. The bank wrote "asking" to close the account
3. The bank wrote cancelling and demanding return of the card
4. The bank added charges totalling £600 on top
(Thus the woman faced a £1,500+ bill)

Fortunately for her, she had a husband who paid up (it was a joint account she'd used!). Otherwise
she would rapidly have been facing debt collectors and possible CCJ. On a limited matter such as
this, I doubt the bank would have involved the police. They aren't interested in prosecutions -
banks have one interest only he getting their money back!

She was also one of these people who couldn't handle money!

In article , Richard White
writes

"David Okopochini" wrote in message
. com...
Hi Everyone,

A quick question about writing cheques from a legal standpoint??? THIS
QUESTION IS FOR UNITED KINGDOM BANKING/LAW ONLY!!!!!!

I know this person who has a bank account that has no overdraft
facility. This person is really bad at handling money so to make ends
meet has started to persistantly write cheque guaranteed with a cheque
guarantee card taking him/her overdrawn (typicall 12 cheques per
month). Direct debits are rarely paid & so to my question.

What action can/will the bank take against this individual to stop
them using the remaining cheques? Is this a civil or criminal issue
(i.e could the bank have the police recover the chequebook from the
individual?) This person still has another 50 or so cheques that they
can write.

I know of a case where a woman wrote a series of £50 card-guaranteed
cheques totalling a £900 single
payment on an account that was already about £10-£20 overdrawn
(unauthorised). This little spending
spree also consumed all cheques left in the cheque book - so the
prospect of more such cheques being
drawn did not arise.

1. The bank honoured the cheques.
2. The bank wrote "asking" to close the account
3. The bank wrote cancelling and demanding return of the card
4. The bank added charges totalling £600 on top
(Thus the woman faced a £1,500+ bill)

Fortunately for her, she had a husband who paid up (it was a joint
account she'd used!). Otherwise
she would rapidly have been facing debt collectors and possible CCJ. On
a limited matter such as
this, I doubt the bank would have involved the police. They aren't
interested in prosecutions -
banks have one interest only he getting their money back!

She was also one of these people who couldn't handle money!

Other than write 18 cheques
--
Zaax
http://www.ukgatsos.com

Thanks for your responses. One thing i failed to mention in my
original post was that the person in question gets their salary paid
directly into the bank account & this is regular as clockwork.

Looking through your replies so far i assume the bank will suspend
future chequebooks & invite the person into the bank to exchange the
cheque guarantee card for a standard solo type card. I would assume
that the account won't be suspended as the amount of salary always
brings the account into credit on payday.

regards

David

David Okopochini wrote:

Thanks for your responses. One thing i failed to mention in my
original post was that the person in question gets their salary paid
directly into the bank account & this is regular as clockwork.

Looking through your replies so far i assume the bank will suspend
future chequebooks & invite the person into the bank to exchange the
cheque guarantee card for a standard solo type card. I would assume
that the account won't be suspended as the amount of salary always
brings the account into credit on payday.

In that case, wouldn't it make more sense to agree a more suitable
overdraft limit?

"David Okopochini" wrote in message
om...
Thanks for your responses. One thing i failed to mention in my
original post was that the person in question gets their salary paid
directly into the bank account & this is regular as clockwork.

Looking through your replies so far i assume the bank will suspend
future chequebooks & invite the person into the bank to exchange the
cheque guarantee card for a standard solo type card. I would assume
that the account won't be suspended as the amount of salary always
brings the account into credit on payday.

Except for when the bank have been levying huge charges.

I believe charges should be *in proportion* to the misdemeanour.

Charging someone 30 quid for being twenty pence overdrawn is a bit off .....
(which is not the case here, but has happened.)

regards

David

I Quite rightly argue you that lenders provide Payday Loan, which is service that customers require. That's right banks charge huge interest rates.

I have seen many worst case scenarios than that. This still seems OK to me to be honest.