Can a cheque be recalled?

[Foresty_Forest]

For one reason or another I need to pay someone a substantial amount by cheque, but they're not keen because they say the cheque could be 'recalled' - even after clearing and after quite a large amount of time has passed, too.

Is this true? If so, is there anything I can do to reassure this person? Unfortunately in this case, it's a cheque or nothing.

 

[Scalloway]

As far as I am aware they can only be recalled if there has been fraud.

 

[Nico Albrecht]

Maybe they are not keen and were hoping to get paid with a 21st century payment method like bank transfer or credit card.

Not sure why people would still use that completely outdated payment method and would expect others to accept it.

Maybe this link can help: http://news.bbc.co.uk/1/hi/programmes/moneybox/3709908.stm

 

[Mr D]

Does the other person insist on a cheque?
Or is the need at your end?

Surely a bank transfer or card payment is easier? Or even cash.

 

[paulears]

I note you said YOU need to pay by cheque, and they're not keen. So you are the customer? It's up them then isn't it? What you want has to be OK to them, they're the one taking the risk and cheques ARE risky, just a promise to pay. How long do they keep the funds ring fenced in case there is at a later date, fraud?

As the fund are in your bank, the reason behind the cheque only transaction is also to everyone here, I think, suspicious. I've not written a cheque in years, what the benefit would be, bar delaying payment by a week or so, is beyond me.

 

[Foresty_Forest]

Thanks for your replies. Sorry for the confusion. Yes it has to be a cheque - it's a pain in the neck all around! Nothing suspicious, it's from a trust - cheques only (no we can't believe it either).

Btw. What fraud am I supposed to commit at a later date?

 

[gpietersz]

The risk is that a cheque can be "cleared" but still bounce or be cancelled.

Its because of the way the clearing cycle works. The payee's bank makes the money available (so its "cleared") before the deadline for the payor's bank to decline it.

As far as I know the UK is still moving to cheque imaging so it can be about a week before the funds are definitely safely with the payee.

its a bit rubbish and I think its because the banks would rather not deal with cheques. I have worked in a third world country that has had a one day cycle for decades.

 

[paulears]

Well - one of my relatives was very old and housebound, so signed the whole cheque book, and then asked the various delivery people to write one out! One did more than one and kept them, gradually using them in dribs and drabs - six months later, it became fraud.

 

[Chris Ashdown]

It can well be that the company does not have a local bank and does not want to drive say 20 miles to pay in a check. Not all banks allow you to pay via post office TSB is one unless separately set up facility

Just do a bank transfer

 

[Guy Incognito]

Why not get the cheque paid to yourself (or your solicitor / bank) and the do the transfer electronically?

 

[sarky]

Why not get the cheque paid to yourself (or your solicitor / bank) and the do the transfer electronically?

Because of the Father Ted dilemma: "It was only resting in my account".

 

[Paul Norman]

Thanks for your replies. Sorry for the confusion. Yes it has to be a cheque - it's a pain in the neck all around! Nothing suspicious, it's from a trust - cheques only (no we can't believe it either).

Btw. What fraud am I supposed to commit at a later date?

It isn't about fraud. In theory, the bank can recall this cheque even after it is cleared if there are no longer funds in the account. It is a fairly rare thing, but still a thing.

I suspect the trust have no electronic banking. They probably could, however, get a bank draft.

 

[alan1302]

Because of the Father Ted dilemma: "It was only resting in my account".

LOL

 

[busowner987]

the answer to your question is YES it can be.

 

[Foresty_Forest]

I suspect the trust have no electronic banking. They probably could, however, get a bank draft.

I think that all trusts have to use cheques - payable directly to whomever the beneficiary is paying. I guess that's because (answering another query) if the cheque was paid into the beneficiary's own account, it would then be considered taxable income. I think?

 

[Paul Norman]

I think that all trusts have to use cheques - payable directly to whomever the beneficiary is paying. I guess that's because (answering another query) if the cheque was paid into the beneficiary's own account, it would then be considered taxable income. I think?

That is possible - I am out of my knowledge area on that one!

 

[Scalloway]

I think that all trusts have to use cheques

Is that because they need two signatories? I can't think of another reason.

 

[Foresty_Forest]

Is that because they need two signatories? I can't think of another reason.

That's the case and maybe the reason?

 

[pentel]

Cheques are a lot cheaper to process than card payments for large amounts.

£10,000 cheque, 67p
£10,000 by card £100-£300

 

[gpietersz]

@pentel but transfers are cheap.