[Pittmonkey]

Received my 1st bounced Cq off a customer today from the bank. £10

This is a new customer and only done the first clean. They have just moved in the house so would imagine their finances are all over the place at the moment.

Anyway just wondering what the procedure would be?
Do I return the original cq with a letter of explanation and ask for payment or would it be better to photo copy the cq and keep the original.

Any advice

Wayne

[David Slater]

What did it say on the cheque?

1. "Refer to Drawer"...its bounced!
Contact customer and inform them. You hang onto the cheque (should you wish to persue the matter - its your evidence).


2. "Please represent"..its hasnt bounced yet!
Give it a couple of days and stick it back in the bank or phone customer and advise them of the problem - it will cost them (and you!) each time the cheque is presented to the bank. They may wish to pay you in cash rather than re-presenting the cheque. They may be waiting for funds to clear their account (wages)...or they may be skint!

[Tosh]

Wayne,

Keep the cheque; you can use it as a LAST RESORT if you don't get paid since you can re-present the cheque to your bank a further two times, and if it doesn't clear; your customers will get a £35+ bank charge.

My advice would be to phone your customers, sound apologetic (though you don't have to) and let them know.  They should pay you in cash.

But if for any reason they mess you about; represent the cheque to your bank twice; if it's not paid they get bank charges.

That would've cost them nearly £100 in bank charges.

I'm sure it won't come to that though.

[Pittmonkey]

Thanks Guy's

It does say Refer to Drawer. I dont suspect a rat (But you never know)
I would just put it down to them moving and founds being all over the place.

I'll pop a letter off to them.

Wayne

[Ravensford]

My understanding is that it is illegal to write a cheque that you know will bounce. Possibly an innocent mistake but contact Citizens Advice if not.

Dave

[Mick (UHPS)]

I’ve had 3 in about 4 years (about 30/week = 6000). Every time the customer has been mortified and sorted it out including any charges immediately.

Pop round and speak to them face to face.

[DaveG]

Mick ........................thought i was gonna get a better look at Charlotte!!!!

[Mick (UHPS)]

 

[Russell Macdonald]

Mick ........................thought i was gonna get a better look at Charlotte!!!!

Same here, dissapointed now.  :

[Neil Williams]

My understanding is that it is illegal to write a cheque that you know will bounce. Possibly an innocent mistake but contact Citizens Advice if not.

I believe this only applies to business cheques.
FAO Pittmonkey, don't forget to add on a surcharge because you pay a charge for each cheque transaction.

[Pittmonkey]

Luckily I don't pay any charges for banking.  So not loosing out there.

Wayne

[Mick (UHPS)]

Luckily I don't pay any charges for banking.  So not loosing out there.

Wayne

Not even for a bounced cheque?

[Moderator David@stives]

It is illegal to write any cheque noing it is going to bounce

I would just phone them, i bet they will be embarrassed and pay you immediately

[Pittmonkey]

Spoke to custy and all is OK. Told me to re-present it and apologised. No fees have shown up on my statement so fingers crossed.

Wayne

[Moderator David@stives]

I am with barclays business account , and it only costs me £2 if someone has bounced a cheque on me , which i never ask the customer for, its a bit embarrassing saying what about my 2 quid

[dave0123]

im with alliance,

no they dont charge you for bouched cheques or refer to "drawer and resubmit" as i have just found out they only time they charge you is when your customer stops a cheque as i got charged for this i dont no why i shud get charged! but it was 7.50 charge 

[David Slater]

Luckily I don't pay any charges for banking.  So not loosing out there.

Wayne

Wayne,

If the cheque is stamped 'Refer to Drawer' it has BOUNCED. The bank wont allow it to be re-presented.

Your bank may well charge you for attempting to represent it. Their bank will just send it straight back to you. It wont even go near their account....even if they have adequate funds.

Contact customer and inform them of what has been stamped on the cheque - 'Refer to Drawer' means exactly what it says.....take it up with the person who wrote the cheque beacuase we aint paying it!!!

[Pittmonkey]

Thanks for that David. Good point!

I will be cleaning next week so will give her the cq back get her to write a new one. (For two cleans hopefully)

Wayne

[David Slater]

Thanks for that David. Good point!

I will be cleaning next week so will give her the cq back get her to write a new one. (For two cleans hopefully)

Wayne

Wayne,

DO NOT give them the 'bounced' cheque back!! - DO NOT accept another cheque - YET!

This is the only evidence you have that a payment which you should have recieved has been cancelled.

YOU keep that 'bounced' cheque until they give you the cash.

Show them a photocopy of the bounced cheque  and ask (very politely) for cash.

If they give you cash (for the bounced cheque) then give them the original cheque back.....oooh, hang on a minute love, I think I may have that cheque in the van (but only after they've given you the £10.00).

If they dont give you the cash, you keep the cheque as evidence of non payment.

When you next speak to them, explain your book keeper overlooked the fact that the cheque had been stapmed with 'Refer to Drawer' and not 'Represent Cheque'....apologise for the confusion and explain you wont be able to represent that cheque and due to your banking arrangemnts it will cost you £35.00 to accept another cheque so its probably best if they pay cash for this visit.

Wayne, Im not big on 'threats' or egging peoples windows or any of that sort of nonesense.

There is a 'polite' way of keeping customers and asking for money. A ot of people are struggling right now. and if you're seen as on of the 'good guys' (friendly, reliable, professional) this will stand you in good stead in years to come.

We all know its their fault...but they are holding your money and you want it....play it softly and you'll keep the customer and get the money 

Only my personal opinion of course 

[Big Dave @ CWC]

just incase you are not aware, bank charges are tax deductable, thats why they do it more to businesses, they know you can claim it back. so that wont hurt your pocket, unless you are unfortunate to get alot of them