building society counter cheque

[spicegirl]

Hi
I had a building society counter cheque made out to a company whom were supplying me with kitchen worktops which turned out to be unsatisfactory.

I took the cheque back to the building society to have the money returned to my account, was told that the money was no longer mine it belonged to whom I had requested the cheque to be made out to.

I was to get proof from the company that they did not require the cheque before I could have my funds returned. As I have had a lengthy dispute with this company, the worktops have been removed this is highly unlikely to be forthcoming, does this mean I have lost all of this money? Thousands!!

I would be very grateful for any advice!

[Buenchico]

When you get a counter cheque the money is immediately taken from your account by the building society. The society then pledges to pay the money to the payee named on the cheque. The whole point of the system is that you can't go back on your agreement by cancelling the cheque (or by emptying your account, before the cheque is paid in, so that it bounces). So the building society is acting correctly.

Your best course of action is probably to send the cheque to the payee, by recorded delivery, along with a formal demand for compensation (stating that failure to reimburse you will result in court action). Keep a copy of your letter. If payment is not forthcoming you should initiate court proceedings:
http://www.hmcourts-service.gov.uk/infoabout/c laims/index.htm

Chris

[factor-fiction]

I'm no expert in this area but if you keep the cheque (I'm not sure of the legalities of that) so the cheque is never cashed by the recipient then the money will remain with your building society in a suspense account and I would have thought it would find its way back to you eventually.

If it doesn't work that way then you might as well offer the cheque to teh kitchen company and from what you say they won't accept it or they could cash it and refund you. (maybe less some expenses)

But I'd check agaon with your building society and ask what happens if the cheque is never cashed

[Mr Veritas]

factor,
If you take the trouble to read Chris' excellent reply (above) you will see that when the Building Society issues a counter cheque they remove the money from the account then and there.
Thus it becomes the equivalent of a Bankers Draft and carries the money with it.As it is made out to a recipient it can only be cashed by that recipient.
If spicegirl hangs onto the cheque it won't (like an ordinary cheque) just cease,the money has already been removed and there is no way she can pay it back again other than sue the recipient after they pay it into their account.

[factor-fiction]

Thanks Mr veritas- I appreciate that the money goes out of her account immediately for the reasons you give, but I'm just querying where the money goes ultimately if it's gone out of her account and nobody cashes the cheque. Don't the funds have to be accounted for eventually?

But a more important issue here may be whether the kitchen still wants the money. If they don't then it must be possible to come to some arrangement

[spicegirl]

Thank you everyone, I don't know where I go from here, as the worktops granite were faulty and removed, payment was never given because of this. I do not thi nk that for one moment the granite company will cah the cheque and reimburse me my funds, in effect from what you are saying I have lost the money.

I am picking up a new car next week they want a draft, I am devastated what happens if I have another BS cheque made out, something goes wrong I lose that as well!!

I have also been told that I can nly have �500 cash out at any time, it does make u wander if it is better keeping your money in a safe.

Thank you everyone for your kind advice, I will have to get my thinking cap on today, I will approach the granite company, I know if I hand over the cheque I will not see the money, it is a no win situ!!

[buildersmate]

Sorry for butting in, but maybe Chris or Mr Veritas can tell us where the money actually goes?
Its got to be a bank suspense account somewhere.
And since cheques have a 'use by' date, is the solution to sit on it until after that date, and then go back and ask for the money back. Even if that denies spicegirl the money for 6 months or so, I'd certainly prefer that situation than the prospect of giving it out and asking for it back again.
There must be SOME situations when a BS cheque is issued but then has to be taken back again.

[sandmaster]

When I was a bank manager the money was placed into a suspense account - not assigned to the payee of the cheque. Quite often customers would return what we called a 'Manager's Cheque' and request a refund which was no problem. I retired ten years ago but I cannot see the problem in getting a refund. Write to the Head Office and initiate the complaints procedure and tell them you will go the banking ombudsman for a ruling.

[Im a BusyBee]

if you dont get anywhere with the BS i would speak with the citizens advise bureau before doing anything.

[spicegirl]

Thank you every one, I tried to telephone the building society 5 times this am the call centres are abroad, the people do not understand what I am trying to ask, it is very
frustrating!! It is a building society recently taken over by a spanish group, (in case I am not allowed to mention the actual one).
I am going to try the financial ombudsman and CAB as suggested, will keep you all posted on my progress the eventual outcome!!
Thank you all!!

[R1Geezer]

DONT WHATEVER YOU DO GIVE THE CHEQUE TO THE KITCHEN COMPANY. They'll say thanks very much!

Take a copy of the cheque.

Write a letter to the Building society enclose the cheque Torn into 4 peices. Then tell them the transaction is cancelled. I have done this before. It's just some numpty in a call centre that doesn't understand.

There is no way you have lost this money. The BS couldn't care less about the kitchen company they are just covering their ar5ses. If the worst comes to the worst the checqu will go uncashed and they probably have a limit of 6 months on it, they'll return the money to you from the suspense account. You'll get it, it just means that you'll have to jump through their admin hoops.

[R1Geezer]

oh and send it reg'd post, of course!

[spicegirl]

Hi

as this kitchen has been in dispute another long story the cheque is over 6 months old infact a year coming up to March, where do I stand as regards this?
Thankyou

[R1Geezer]

Just do what I suggested.

[dot.hawkes]

Abbey and Bradford and Bingley were both taken over by Santander, i had a letter from the portugese boss of Santander, i can get you his email addy if you like. : )

[spicegirl]

thank you Dot that would be brilliant my email address is [email protected]