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Cheque guarantee limit help please

(25 Posts)
littlelamb Thu 18-Aug-05 20:21:36

Ok, to cut a long story short I don't have the money to pay my rent this month, so I wrote out six seperate cheques for 100 pounds each, which is my cheque guarantee limit. each cheque bounced today. I spoke to my brother about htis, and he thinks it may be security related, ie. perhaps they think someone's stolen my cheque book and written out a load of cheques. I am just worried that they have reduced my limit. Do they have to tell me before they do this? And if I go in tomorrow explaining that I have a payment coming into my account in two weeks will they let my cheques clear? Just need your advice really, because I am really panicking.

misdee Thu 18-Aug-05 20:23:55

they have bounced because you dont have the cash in there.

compo Thu 18-Aug-05 20:25:27

I don't understand. If you don't have the money in your account for your rent how can you write cheques for the same amount however many you write? Cheques clear a lot quicker nowadays

milosmum Thu 18-Aug-05 20:25:48

the cheque amount is only guarenteed if produced with the guarentee card- its the card that guarentees the amount not the cheque..

littlelamb Thu 18-Aug-05 20:26:08

Sorry to sound dense but cheques have cleared in my account before when I have not had the cash. I am so angry, because none of this is my fault. I am STILL waiting for the child tax credit I am owed, which is more than £1000 now

misdee Thu 18-Aug-05 20:27:42

if you dont have an overdraft then the cheques will bounce. they may allow small ones through but not 6 different ones for £600. go to the tax office tomorrow and ask for a hardship payment.

littlelamb Thu 18-Aug-05 20:28:00

Ahh thanks Milosmum that makes sense now. I have also done this with my nursery bill, due to be paid next Monday. If I take the card in tomorrow will it make a difference and allow the cheques to clear? If I don't pay it I can't finish my degree

milosmum Thu 18-Aug-05 20:28:09

from what i know- its down the banks descretion re letting cheque through when no funds avaliable. therefore i assume the bank manager wasn t happy letting 6 cheques for £100 going through with no funds...

emily05 Thu 18-Aug-05 20:31:17

If the cheques are to the same payee and appear to have been written and backed one after the other then the bank can refuse them. Also the payee should write the card details on the back.
If the cheques had alll been backed within the g limit and to different payees then they would have to have excepted them. I hope that this makes sense (used to work in cheque clearing

littlelamb Thu 18-Aug-05 20:31:56

Do you think going in and begging would help?! Could I explain about the payment I am due? Might it make a difference if I take my daughter in and explain my situation, or am I just incredibly naive?

misdee Thu 18-Aug-05 20:32:53

if you have a good crexit hitory with the bank and ont regularly go overdrawn then you could give it a try.

starlover Thu 18-Aug-05 20:34:02

littlelamb... do you have an overdraft?

emily05 Thu 18-Aug-05 20:34:44

It will all go on the status of the account as to whether they will let them go through. They will only let them go through if you have funds - so the only way would be if they allow you and over draft facility or some kind of lending.
The cheques (if they have bounced) could be on their way back to the payee - you need to talk to them as they can represent them (depending on the return reason). You could get fined for rejected cheques as well.

I would go to your bank pronto.

emily05 Thu 18-Aug-05 20:35:58

I syphathise by the way as the tax office screwed up my payments - I would be on to them tomorrow if I were you and give them a right talking to. I hope this works out x

littlelamb Thu 18-Aug-05 20:38:02

Thanks. I do have an overdraft of £1000, as it is a student account, but it is supposed to be £600 more than this as I am in my final year. However, they told me I have 'bad behaviour' on my account, so they won't extend it. It annoys me because when I was pregnant, in my first year, I worked 24 hours a week as a waitress, as well as my fulltime course, so my credit history would be good, but what do they expect me to do now?!

bumpylump Thu 18-Aug-05 20:41:32

yep as Emily05 said they could charge up to £30 per cheque that has bounced. In the bank I worked in we had the authority to remove/reduce peoples credit limits at any time. If a customer called or came in to see us when they were having difficulties most people went out of our way to try to help them, tell them the whole situ and they can hopefully give you a temporary overdraft. Also if you are with a rental agency my friend recently struggled and they agreed she could miss a month and catch it up over the next few months. Hope this helps

lemonice Thu 18-Aug-05 20:42:37

If you knowingly write a cheque with insufficient funds then it is fraud...and in your small print will be something about multiple cheques for a single transaction...(I've looked into this recently)

littlelamb Thu 18-Aug-05 20:52:52

Thanks everyone. I admit to feeling incredibly stupid and irrisponsible for writing so many cheques but I really didn't see another option. i am going to go and explain myself tomorrow and hope they are sympathetic. Failing that I am going to go and DEMAND something from the tax credit people, and maybe look into a crisis loan, I didn't get round to it last week. Hopefully nursery will understand if I can't pay, and maybe the university can help me somehow too. I am in tears, because I just feel so stupid and helpless

emily05 Thu 18-Aug-05 20:58:54

It is so easy to get into this situation. DOnt feel bad as the bank see this all of the time. They wont be surprised or think that you are bad. Go and talk to them and see what your options are.

Agree with what you say about the tax office and a hardship loan sounds like a good idea.

Try not to abuse your bank account again, as this will get you fines and a bad credit score - these type of things stay with you and will effect your opitions in the future (for loans and things)
If you get into financial difficulties then better to tackle that head on than get your account into trouble. The banks are there to make money and the more you sink financially the more they charge and make!

Update us on how you get in and again dont feel daft - I have done this before when I was a student - it is bloody hard. x

lemonice Thu 18-Aug-05 21:00:50

I'm really sorry, I didn't mean to sound harsh...I tried to sort out a similar problem (but with tiny amounts) for my dd recently and she was stuffed with bank charges...you are much better off going in to the bank..than writing cheques with no funds..hope they are helpful...

littlelamb Thu 18-Aug-05 21:01:01

Thank you, your words are really kind. I know burying my head in the sand is what got me into this in the first place, so I just have to face it. Must be brave, and be responsible for my daughter

emily05 Thu 18-Aug-05 21:09:32

littlelamb - it wont always be like this. I am in the process of starting to pay all of our debt back (we run up about £10,000 when we were carefree!!) Although it will take a while there is such satisfaction from being in control.

Confront it head on and try and sort it out because you will feel so much better.
Think, once you have done your course you will be able to get a job and start working towards financial security.
You are working towards a better future and it is hard and I admire you as it isnt easy studying and haveing a child as well.

steffee Thu 18-Aug-05 22:05:19

littlelamb, what about a hardship loan?

lemonice Thu 18-Aug-05 22:06:56

Yes, a hardsip loan from the college/university...

littlelamb Fri 19-Aug-05 08:13:24

I had a hardship loan a couple of months ago from uni but I may have no choice but to apply again. I'll see how it goes today, had a very sleepless night but I'm not scared anymore, I just feel like I'm on a mision!

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