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Original poster

argh please help - postdated cheques/payments

22 replies

worriedaboutthis · 18/01/2006 12:24

A client recently gave me four cheques for weekly payments. She is meant to pay me weekly on a Monday, but I have only just realised the cheques were dated for four Thursdays. The following week I paid all four into a bank, after being advised that postdated cheques are usually held by the bank until the date on them, or else returned. I'm terrible for losing cheques, so I thought this was the best option. By the date I paid them in, one was for the previous week, the other was for the next day so only 2 were for 'future' dates.

She has contacted me (a week on) as all four were taken out at once and she's been given huge overdraft fees. I went into the bank to complain - after all surely they can't just cash cheques dated for the future - and the bank said they only check for amounts over £5000 (well the lady said over £10000 then changed it) so it was my tough luck.

Dh phoned the bank head office to complain (both at the rudeness of the staff at the branch and about the fees - and about them just cashing the cheques as to be honest it did us no favours!) and they will contact us, apparently.

Does anyone know where we stand?

OP posts:

purpleturtle · 18/01/2006 12:27

I thought it was illegal to write postdated cheques.

Hausfrau · 18/01/2006 12:30

This reply has been deleted

Message withdrawn at poster's request.

Hausfrau · 18/01/2006 12:31

This reply has been deleted

Message withdrawn at poster's request.

Original poster

worriedaboutthis · 18/01/2006 12:49

Okay then. The client is very angry at me and demanding I pay the charges. I knew they were postdated - although by the time I paid them in only two were technically post dated. I know it's my mistake, but I didn't think that they'd just do it straight away.

I guess I'll have to pay for her. It makes me cross as I've been lenient on her so much. She's meant to pay weekly on a Monday and for a good six months she either paid on the Thursday (by cheque, so it ended up at least a week late) or usually two weeks in arrears. I could have ended up with charges too but I have previously spent a lot of time juggling money between accounts to avoid it. And I never brought it up with her because I know she struggles with payments at times.

Bloomin hell.

OP posts:

purpleturtle · 18/01/2006 12:56

I think you'll have to refuse to take postdated cheques again - but I think you might have learned that one already! Perhaps you could offer to pay half the charges? And I think you need to reiterate the agreed payment date/methods.

misdee · 18/01/2006 12:58

if the 2 which were ok were cashed at the same time, would she have still gone overdrawn?

Hausfrau · 18/01/2006 12:59

This reply has been deleted

Message withdrawn at poster's request.

Hausfrau · 18/01/2006 13:00

This reply has been deleted

Message withdrawn at poster's request.

SoupDragon · 18/01/2006 13:00

I wouldn't pay the fees. It's not your fault your bank sent them on without checking the date, her bank should probably have refused them at their end of the clearing process, she paid on the wrong day anyway and often late...

purpleturtle · 18/01/2006 13:01

My cheque book says:
"Remember, you should never write a future date" under the section - how to write a cheque. She is definitely as much to blame for writing the cheques as you are for cashing them. And in any case, you should be able to cash them on Mondays, not the following Thursday, which presumably would still cause her a problem.

Original poster

worriedaboutthis · 18/01/2006 13:02

misdee - I'm not sure. I know her finances are shocking, but as she's a single parent (and I need the work!) I've always taken pity. She (on the very rude phone message) made it sound like I'd sent her over her overdraft by taking out all four cheques, when only two were postdated (and currently it's only one) so I do wonder.

I definately won't do it again. She said she did it to help sort her finances but it doesn't seem to have helped does it.

OP posts:

SoupDragon · 18/01/2006 13:05

"after being advised that postdated cheques are usually held by the bank until the date on them" Who told you that?

SoupDragon · 18/01/2006 13:06

Personally, I think it's her job to complain to her bank as they are the ones who actually paid out on post dated cheques when there weren't enough funds to cover them.

waterfalls · 18/01/2006 13:08

Sorry, there is no way I would pay or even contribute to the chargses, she must have an authorised overdraught otherwise the cheques would have bounced.

But if you do decide to pay them, tell her you want to see her bank statement first to see the charges for yourself.

WideWebWitch · 18/01/2006 13:23

This isn't your fault, it's HERS! It's not illegal to write pdated cheques, it's illegal to write a cheque knowing funds aren't available or something like that. But I doubt anyone's ever prosecuted for it tbh. So let me get this straight: she's paid you late for a long time now? And you've let her and now she's paid you 2 x on time (or 1 x late and 1 x just on time) and twice early and she's having a go at you for it? She's got a cheek tbh. It's one thing to call you and say 'that put me in an awkward position I wish you hadn't banked them but I won't send you future dated cheques again' and quite another to demand you pay her bank charges! Esp since you haven't done the same and have let her pay late on many occasions. So imo her fault for writing them. Although she ought to have got your agreement that you wouldn't bank the later 2, if she had then I think it would be a different matter.

saltire · 18/01/2006 13:55

I agree with waterfalls, she must have had an authorised overdraft, otherwise they would bounce. It seems to me that you, as her childminder, have been more than tolerant in the past, regarding late payment. Its her fault, not yours
on a different note, if she's struggling with paying her childminding bills, does she not qualify for the tax credit help with childcare. If she's a single parent she should be entitiled to quite a bit of help.
I only have oe mindees parent who pays by cheque and she always pays it on the first day of the month.

Blu · 18/01/2006 22:02

I think Soupdragon has got it spot on.

Elf1981 · 18/01/2006 22:05

Its not the banks fault. Its standard practice to only check cheques over a certain amount, or do spot checks on certain cheques, so these wouldn't have been picked up.
The client needs to go to her bank and complain, she may be able to argue it from her side and get her overdraft fees refunded, this happened to me and I managed to get my overdraft fee back.

jothorpe · 18/01/2006 22:14

APACS has a handy guide for anyone who accepts Cheques (and for those who write them). APACS advise that postdated cheques are not written, and it is against the terms of some banks and building societys.

Agree that it isn't your problem that she's been charged by her bank, it's for her to address with her bank.

waterfalls · 19/01/2006 12:23

I had a direct debit try to go out once, but no funds were in there, and the bank charged me £35.

I rang the bank and explained that I am otherwise a very good customer and couls they cancel the charges, and they said yes they could as I have been clear of bank charges for 12 months, they explained that they can always cancel charges to customers who have been clear for 12 months, and that if it happened again within the next 12 months they wont be able to cancel again.

ladymuck · 20/01/2006 09:22

Think this is being a bit harsh on the client to be honest. It sounds as if she was writing out the cheques for the next 4 weeks - in other words she was trying to ensure that you did in fact have the cheques in your possession on a timely basis rather than having a weekly hunt around for her chequebook (I'm assuming that you're a childminder?).

I have to say that if I had been in her shoes, I would be peeved. I would have assumed that I was doing you a favour by making sure that you could cash the cheques promptly each week, and certainly wouldn't have expected you to cash the lot in one go. I'm fairly sure that she won't give you postdated cheques again (I certainly wouldn't), but I think that it is a bit harsh to say that it is all her fault. If she had wanted to prepay you for all 4 weeks at once she would have written you one cheque for the month.

If I read it correctly you made the error by assuming that the bank wouldn't honour the cheques. I think that you could see if her bank will reverse the cheques, given that they are strictly invalid - this will still leave some charges, but not the overdraft ones.

Whether the cheques should have been written for Thurs or Mons is a different matter, and one you should have raised before cashing them to be honest. Sorry.

julienetmum · 25/01/2006 14:47

I accept postdated cheques from people who wish to pay monthly. I put them in envelopes with the relevant cashing dates on and keep them in my safe.

This way I am not having to chase everyone for cheques every month, I have them ready to bank.

I can just imagine the outcry if I paid them all into the bank in one go. Banks are not legally bound to not cash postdated cheques, whoever advised you of this was totally wrong.

If I am honest I would expect to pay any fees a customer had incurred as a result of this. You live and learn.

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