these cheques were issued long before the IVA was considered and only got letter to say bank was frozen about 4 weeks ago and cheques have been with pawnbrokers for about a year.
Should i fall into some problems over this with my IP would anyone here be able to help ?
reference the cheques, I agree but my cheques 'bounced' and i had no letters telling me not to write anymore. Strange but thats what happened. Probably about 3 years ago now
I also dont know if it makes a difference with goods from shops rather than cheque cashing. Obviously a shopkeeper couldnt chase you for it but a cheque cashing shop can as you sign a credit agreement with them when they hand over the cash. Banks are probably aware of that
Many thanks to all, got in touch with IVA people advised them of the above and they will add said cheques to balance of IVA. Thankyou for your time (cheques will be bounced as bank account is frozen).
Regards, David Mond, Insolvency Practitioner for over 46 years. Personal Insolvency Practitioner of the year 2012, Personal Insolvency Practitioner of the year finalist 2013 & 2014 awarded by Insolvency & Rescue Magazine and 2015 finalist for Personal Insolvency Firm of the Year.
Hi,
My friend runs a pawnbroking, cheque cashing business, the BCCA British Cheque Cashers Asssociation) has a third party agreement with all the banks (through APACS) which says :
if they cash a cheque for cash :
(a) they must present it within 3 days of being written or the cheque will not be valid and the 'cheque casher' agrees to indemnify any loss as a 'third party'of the bank - most will ask you to post date the cheque or leave it undated for this reason.
(b) they must not actually allow cheques to 'roll over' i.e month to month- most will ask you to provide a new cheque each time.
(c) They must indemnify the bank against any loss if the cheque has been written outside the terms and conditions of the bank account i.e your terms and conditions will inevitably state that you must not issue a 'guaranteed' cheque which would cause your account to go overdrawn or when there are insufficient funds to cover it. If this is the case then the cheque guarantee card has been invalidated at the time it is used and the bank does not have to honour it because you have not guaranteed the cheque in accordance with the permissions with which you have to do so. The 'cheque casher' has no redress against the bank.
Naturally banks would like to see the end of 'cheque cashing' businesses.
With reference to a cheque "guarante card" .. this is how they work ...
A cheque, if issued, and then bounced due to lack of funds, so long as it is under the guarantee amount, will be honoured by the insurance of the guarantee card issuing company.
It's a bit of an untidy system, because it will show as a bounced cheque. If you personally, or in business have paid in a cheque, and it bounces, it's down to you to chase the issuing company to get reimbursed, and they dont always reimburse the cheque bounce fees.
I used to be a Regional Training officer for a High Street Retailer, then a store Manager beore that, had to deal with this several times.
(I know this is a little "off thread" but the question came up!")
DT
There is more to life than money and material things .... good job too !
not being awful (greedfighter) but please read the other posts if i were to go into ifs whens and why fores (very drawn out) maybe you would get me. i under stand what you have written but i wasn`t "technically " looking for bank to pay if i had or still am liable so be it.
Sorry trudi, I was just reaffirming lone rangers point in relation to whether a bank has to honour cheques written with a guarantee card. Nothing wrong with cheque cashing I used to use them all the time at one point. I like everyone else dont think you will be liable at all(they will just go into your IVA if they were before it). If the bank loses out hard luck as far as I am concerned -if the cheque casher loses thats also hard luck - you will have paid the value of those cheques several times over at vast profit to the pawnbroker.
Last edited by greedfighter on Mon Oct 06, 2008 6:35 pm, edited 1 time in total.
