Unpaid cheque

[Topttumps]

So we have just received quite a large insurance claim. It was paid by cheque which we duly banked. We discovered this weekend that the money has been withdrawn from the account with the details unpaid cheque.
We have rung the issuer and they say that there isn’t any problem their end. Of course we cannot ring the bank as it is a a Bank holiday.
Just wondering if anyone knows why this might happen. We will be ringing bank first thing of course but it just feels dodgy to me.

Did it actually clear? It may have shown on your bank account, but it may not have been "cleared" - cheques usually take a few days to clear before you can draw the funds - during that time, they can be cancelled or reversed.

Did the payee name on the cheque match the name on the bank account?

Were the other details on the cheque correct, i.e. did the numbers match the words, was it signed, was it recently dated?

Banks don't do "security" checks straight away - they put the cheque through the system and then do security checks later, so sometimes it does look as if it's paid in, but it's not cleared funds, and can be reversed later.

Thanks for the reply. The cheque looks correct. Ie words and figure and name match etc. The card was credited fine but a couple of days later there is a corresponding debit with the details unpaid cheque.

Our worry Was that the cheque had been cancelled by the issuer but they say this isn’t the case. Bizarre.

Sounds to me like there were insufficient funds in the account it was coming from so the cheque 'bounced'