Banks charge for a figure of services. You must be given details of the charges before opening an account with the bank or building society. After you contain opened an account, the bank have to keep you informed about any changes to charges.
What Is A Cheque?
A cheque is a written order from you as the account holder to your bank. It authorize payment from your account to whoever is named on the cheque (called the payee). A cheque have to be signed and properly filled in, otherwise the bank may return the cheque unpaid.
If a cheque is crossed and marked ‘account payee’ or ‘account payee only’, it must be paid into the account of the person it’s made out to. On the other hand, a few companies offer cheque cashing facilities and they should cash a cheque noticeable ‘account payee only’. They should charge you for this. If a cheque is uncrossed, or ‘open’, it doesn’t have to be paid into an account. In this case, the payee can simply take the cheque to the bank and get the cash.
You can ask your bank to stop a cheque, that is, refuse to pay out against a cheque you have written.
It is not against the law to stop a cheque. Though, it is a criminal offence to hand over a cheque with the intention of stopping in later, although this can be different to prove. If you hand over a cheque knowing that the bank would not pay the amount, that is, it will bounce the cheque, and this is also a criminal offence.
If you buy a little by cheque and then you stop the cheque, court action can be taken against you for the money owing.
You may wish to stop cheques from being paid from your account if your cheque or cheque book is lost or stolen.
If you went to stop cheque, you should telephone the bank without delay, giving details of the cheque.
The telephone call should be confirmed in writing as soon as possible. You will normally be charged for stopping a cheque. A stop will cancel the cheque completely, unless a shorter period is agreed, for example, if you wish to delay payment until you have enough money in your account.
You would not usually be able to stop a cheque which you have used with a cheque guarantee card. However, check the terms and conditions of your account as there might be circumstances when you can stop s cheque. You might have to pay to fee for this.
If a bank pays out after a cheque has been stopped, they must repay the account holder. In certain circumstances, the bank or building society may try and get the money back from you, but you can dispute this. If you are in the condition, you should get lawful advice.
Lost Or Stolen Cheques Or Chques Books
If you have lost or hand your cheque book stolen and you think somebody has used it to make an illegal withdrawal on your account, you have to tell your bank as soon as you can.
You should be liable for any illegal withdrawals which are made before you tell your bank about losing your cheque book. However, this will only be up to a most of £50, unless you have acted fraudulently or been negligent.
You will not be responsible for any illegal withdrawals after you have told your bank, except you have acted fraudulently or been negligent.
If your bank is holding you responsible for a cheque which has been lost or stolen, you must get advice form an experience adviser, for example, at a citizen’s advice burean.
If you have not allowed the withdrawal, your bank must refund the money immediately. If there is evidence to suggest you acted fraudulently or were negligent, they can holdup the refund while they carry out additional investigation. However, the examination must be carried out within a few days.
Your bank must have a way for you to repost a lost or stolen card or where someone else has used the card details without your permission at all times.
Your bank should be able to confirm in writing that you report your cheque book stolen, up to 18 months after reporting it.
Unfair Overdraft Charges
Banks charge when you go overspent without an arranged overdraft capability, when you go over any decided overdraft limit, or when there is not enough money in your account to cover a withdrawal, such as a cheque. This is called an illegal overdraft. Charges for unauthorized overdrafts are often very high. Many citizens have complained that they are unjust and have asked for refunds.
As there were so many complaints about unjust overdraft charges, the former Office of Fair Trading (OFT) took an examination case through the courts and existing complaints were put on hold. The Supreme Court has now determined that the OFT did not have the power to decide if the charges are unfair. If you have made a claim for a refund of bank charges, it’s likely that your claim will currently be rejected, although your bank should treat you sympathetically if you can show financial hardship.
The circumstances are a little different in Scotland where some sheriff courts are accepting claim and allowing the case to be heard at a formal hearing. A few of this case has been settled out of court, with no additional need for legal action.
Who Can Run A Joint Bank Account?
When two or additional people make a decision to open a joint bank account, they contain to sign a form call a authorization. The authorization sets out what the joint account holders can perform, for example, who can sign cheques and take money out.
You be able to cancel the authorization at any time without the agreement of the others. You would require doing this, for model, if you want to change the conditions of the joint account or close it.
Though, it is probable to draw up a mandate which only allows you to change the terms of the joint account or to shut it with the agreement of all the account holders.
The bank or construction society must send statements to all the joint account holders individually. This is if not all the account holders sign an agreement that they only want to receive one statement.
Joint account holders are not automatically allowed to make use of each others recognition. Credit must not be linked to the account of single of the account holders without the conformity of all the other account holder. This is because the other account holder would then be responsible for the debt.
If an over draft has not been arranged on a joint account, all the account holders should be total if an unauthorized overdraft occurs.
Opening A Joint Bank Account
To open a joint bank account, you regularly have to fill in a submission form. Habitually, you be able to do this in the bank or building society, online plus occasionally you can do this on the phone.
There is no boundary on how many joint account holders there can be.
You will as well have to provide proof of your identity including your full name, date of birth and address.
You frequently have to show the bank two separate documents that show who you are, for case in point, your ID, and where you live, for example, a current bill.
While you open a combined account, the bank or building society must tell you about the extra rights and responsibilities involved before you open the account.
They should inform you:
• if single person can take out all of the money without the others knowing or giving their permission
• if every person is independently responsible for playing back the whole amount of any overdraft on the account
• What to perform if your affiliation with a joint account-holder ends.
A bank have to pay out on (honor) any cheque you write out, provided there is sufficient money in your account or the cheque is within the limits of an agreed overdraft. A cheque which is not paid out is usually known as a bounced cheque.
If the bank does not pay out on a cheque when your account is in credit or within an decided overdraft, you can take action against the bank. If you do not have enough funds in your current account to cover a cheque but you do have enough in another account, for model, a deposit account, your might use these funds to cover it. Though, your bank does not have to do this if it chooses not to. A bank may also treat the cheque as a request for an overdraft, which it may make a decision agree to, depending on your credit history.
You be supposed to be careful about accommodating a cheque from someone you do not know or trust for an expensive item, like a car. If a cheque is issued frequently or is found to be stolen, the funds can be taken back even after it has passed through the payment system. If this happens, you should make contact with the account holder’s bank straight away. Banks do not always take back money and each case should be decided on the individual circumstances.
If a cheques is return unpaid, you can try to recover the quantity from the account holder. If you do not know the account holder’s address, you could :
• Write to the branch on which the cheque is drawn.
• Tell the police force if you suspect fraud
• If the cheque is still not paid, you could consider going to court.
How Long Should It Take For A Cheque To Clear?
There are regulations about how long it should take for a cheque to clear. These policy apply to cheques paid into current, fundamental and savings accounts.
During a current or basic account, it should take a highest of two days after paying in a cheque, before you should start earning interest on the money paid in.
you should be able to withdraw the money within four days (six days from a savings account) and after six days, you can be sure that the cheque won’t bounce. These limits are the highest you can be expecting, but you might be able to do these things sooner.
If a bank has wrongly advised you that a cheque has cleared, you may be able to claim compensation from the bank if you’ve suffered any loss.
Who Is Responsible For Debts?
If you contain a joint account and your individual account with the same bank or building society, the bank can move money from your private account to cover a debt on your joint account. The bank may do this automatically, even though in practice, banks will often asked your permission before transferring money in this way.
Though, the bank cannot move money out of your joint account to cover a debt on your own private account, if not all the joint account holders have agreed to this or the terms and conditions of your joint account say this can turn out. If the trams and conditions state this can happen, your banks have to have pointed this out to the account holders.
If there’s an overdraft on a combined account, each joint account owner is responsible for the whole of the money owing.