A Word of Warning If You Stop A Cheque

[saltirehangingonachristmastree]

I posted a thread that I ahd tried to stop a £50 cheque, i singed the boys up to karate and they changed their minds, so I cancelled the cheque. the bank (HBOS) charged me £7.50 to do it. Today the cheque cleared from our account.
When i got through to them to find out why I was told

"Unfortunately, because the cheque was less than £100 and your guarentee card is for cheques up to £100 we still have to honour them even if they are stopped"
I pointed out that I hadn't written my card number on the back. Apparently it doesn't matter, they will still honour the cheque if it's presented after it has been stopped. So I said "welly our collegue let me cancel the cheque, and told me it would be ok, yet she would obviously be aware of it".
I ahve stopped cheques for less than £100 before and they have never been rpesented

Does the fact that the cheque was presented mean that you hadn't told whoever was running Karate that your children wouldn't be going?

What! HSBC have charged my gran £10 for stopping a fifty pound cheque - we were worried it might have got lost in the post/rubbish - long story - are you seriously telling me that they've charged her that knowing they would honour the blithering thing if it was then presented???

yes, you should have gone to the karate club and asked for the cheque back.

Are you going to get the cancellation fee back, since they paid the cheque anyway?

I told him that we weren't going - well I left a message on the answering machine telling him that. He also said when I called him just now to ask for the money back that we had agreed to go, but I never signed anything so didn't agree to anything.

I am furious with the bank though, they can't just do that surely?

If you wish to place a stop on a personal cheque, you will need to call us on 08457 21 31 41 (lines are open 8am to 8pm 7 days a week) before the cheque is paid. There is a charge of £7.50 for this service and you should advise the person you gave the cheque to that you have cancelled the cheque.

It is not possible to stop a guaranteed cheque. The amount of the guarantee is shown on your debit / cheque guarantee card.

That is from the bank of Scotland site. it doesn't say that they will honour cheques that don't have the card number written on the front

NOrthern Lurker, my bank informed me that if I thought a cheque had gone missing in the post it was comon practice to cancel it without charge.

I don't think they'd look twice at a £50 cheque, to be honest. But at the very least they should give you your £7.50 back as they failed to stop it.

I would phone the Karate man and ask if he will refund your money - if not then send the boys to the lessons anyway - they're bound to enjoy it once they're there.

40+ - surely it shouldn't matter how much the cheque is for? We cancelled a cheque for exactly £100, which by teh banks reckoning should have been covered by the guarentee, yet it didnt get presented

It's annoying I agree. I think they've made a mistake, but you can bet they won't refund you the £50.

Well finally got a letter from the bank today. They say they will refund me the £7.50 that they charged me to stop the cheque. They have also discovered that the person who i spoke to originally to stop it didn't stop it. Also they said that it is their policy that any cheque written for under £100 which has a guarentee card for £100 will not be stopped if presented for payment. I didn't write the guarentee number ont eh back, so surely it shouldn't be . I think they are talking bullshit, i have stopped cheques for less than £100 before which were presented and they weren't cashed.
me thinks a letter to Sunday Post guy is in order

It is illegal to stop a cheque that you have given to someone. The karate guy is within his rights to sue you if it bounces.

how is it illegal?

How is it illegal.
Also it won't bounce as he already ahs the money doesn't he, he took the cheque to the bank - despite being told by me that I ahd changed my mind - and the money was taken from my account

After many phone calls from me - it's an 08457 number as well , I finally got through to someone today who said that if I hadn't written my card number on the back then the cheque wasn't guarenteed. They are getting a copy of the cheque sent to me (which i ahve to apy for) to see if it was written on the back. even though i ahve told them till I'm blue in the face. Once it's come through I have to go into a local branch of BoS or Halifax, explain it all (again) to them, and they will start the process of getting me refunded.
Of course all this sudden flurry of activity could be that I said the words "Financial ombudsman" and "Consumer champion in the sunday paper" in the same sentence

Giving someone a cheque is giving them a legal agreement to pay. You were giveing Karate man a legal agreement to pay for that amount of karate lessons whether or not you signed anything. Verbal contracts are just as binging as written ones.

Stopping it means he could sue you if he so desired.

thanks, presumably people generally don't think they will be sued