Unpaid cheque

[lookingforward]

I've got another thread running about Mum's will but a situation has arisen re a cheque so thought I'd ask in here which is more to do with the issue if that's ok

Basically I got a cheque for part payment of the will which was for want of a better word, bounced by the solicitors bank as "alteration requires drawers signature". I personally can't see any issues with it but my question is whether banks can bounce a solicitors cheque or should they have phoned through to ask questions, I mean what would happen if it was for a house deposit or something ?

I intend to have a go at the solicitor later and maybe get some apology, and it's up to them to argue the case with the bank.

[SXGuy]

Re: Unpaid cheque

From what i understand "alteration requires drawers signature" usually means that they have crossed something out to correct a mistake and forgot to initial it. If you go in to a bank and try to deposit a cheque where for example you put the wrong date and have corrected it, they will ask you to initial it before they will accept it.

So its likely they have either done that, or maybe crossed out some of the worded part and re wrote it but didnt sign where the alteration was made.

Its an easy mistake to make, doesnt make it any better, but the bank wont take an altered cheque without it being signed/initialled.

[julian]

Re: Unpaid cheque

From previous experience on 1970s manual cheque reconciliation every cheque came into the bank branch where the account was held and a clerk ensured that the cheque looked alright and the correct account was debited. The clerk would withhold payment until any anomaly was clarified with the account owner. eg if a $ cheque was drawn against a £ account, or the account was in overdraft.

From previous experience on electronic systems, all cheques are scanned in when they are received in the parent bank for clearing, and character recognition software examines the cheque and the account is checked for the balance, any stops etc. If the cheque passes the tests it goes through and the rest of the clearing process is followed. If there is an anomaly, eg no account, account closed, account overdrawn etc. the cheque goes into the Suspense List and it is examined by a person who approves or rejects (bounces) the payment


In all cases the bank is trying to prevent incorrect or fraudulent payments. If the cheque is handwritten, it could be that the pen left the paper or there was hesitation in the signature. If printed, the solicitor needs to change their printer. You shout at the solicitor, and then they can shut at their bank for the loss of reputation. There may have been changes in the banks software that have affected what would previously have been accepted eg higher resolution scanners, or the clerks are on holiday so everything from the Suspense List is bounced until after the holidays.

Certain cheques go through without problems as long as they are within certain limits. A large and important client would receive a courtesy call from the bank. However as most banks have centralised Clearing, there is not the same contact.

[lookingforward]

Re: Unpaid cheque

Thanks to you both, I have the cheque in my possession now and there's nothing to the naked eye that appears wrong, weird

It's hand written, the solicitor said the bank stated my name had been added to, in order to change it but I certainly can't see that with the naked eye.

[julian]

Re: Unpaid cheque

Could be that the bank's software has picked up on different pressure in the handwriting? e.g. the person writing the cheque looks at instructions writes Mr Joe, goes back to instructions to check spelling of Bloggs or is it Blogs, at which point the telephone rings and after a cup of tea and a biscuit the rest of the name is written. Different pressure, slightly different angle.

Alternatively the bank's optical character reader (OCR) software is incorrectly calibrated.

In either case the bank should have conferred with the solicitor and not just bounced the cheque. The solicitor would have been able to confirm that the name was correct. The bank should have told the solicitor because if they are going to bounce cheques that fail the OCR, the solicitor's procedures need to change to obviate the risk.

Has the solicitor provided another cheque? Clarified with the bank that there was NO fraud committed/complained about their customer's distress/etc The OCR software appears to be incorrectly calibrated.

[lookingforward]

Re: Unpaid cheque

Could be that the bank's software has picked up on different pressure in the handwriting? e.g. the person writing the cheque looks at instructions writes Mr Joe, goes back to instructions to check spelling of Bloggs or is it Blogs, at which point the telephone rings and after a cup of tea and a biscuit the rest of the name is written. Different pressure, slightly different angle.

Alternatively the bank's optical character reader (OCR) software is incorrectly calibrated.

In either case the bank should have conferred with the solicitor and not just bounced the cheque. The solicitor would have been able to confirm that the name was correct. The bank should have told the solicitor because if they are going to bounce cheques that fail the OCR, the solicitor's procedures need to change to obviate the risk.

Has the solicitor provided another cheque? Clarified with the bank that there was NO fraud committed/complained about their customer's distress/etc The OCR software appears to be incorrectly calibrated.

Hi Julian,

I've asked for a direct transfer at no cost to myself due to the error with their bank. I didn't want to be waiting another 4/5 days to get the money, it was bad enough it happened just before the bank holiday. As it stands the senior partner wasn't back until today and the accounts person who can do the transfer isn't back until tomorrow. All sounds very Micky Mouse.

I was told before that they wanted £80 odd pounds for the TT which I declined and hence the cheque.

Maybe if they have to do it for free they'll create a fuss with their bank to get the issue resolved