Is there a standard maximum life for a cheque? I have known the Halifax to turn down cheques at the counter that are more than sixth months old - I have also known the Abbey National to accept and clear cheques two years old.
In message , Rob writes
Although not enshrined in statute, case law and banking practice has established that a cheque becomes 'stale' after 6 months and can be returned unpaid with the non-derogatory answer "out of date". But this is over ruled if the cheque was issued under the terms of a cheque guarantee card. The return of the cheque as unpaid does not invalidate the cheque, it merely gives the drawer the opportunity to confirm its validity and in no way effects the payees rights as a creditor of the drawer. Some quasi cheques (such as dividend or interest warrants form the Bank of England) have different validity periods beyond which they need to be re-issued.
As a collecting bank the Halifax were wrong to turn down the cheque at the counter as being 'out of date' unless they were also the drawee, which is unlikely. A collecting banker should not refuse to collect any commercial paper that is potentially collectable. As evidence I refer you to the 'legal eagle' (or is it beagle?) on the Jimmy Young show one Friday morning in about 1987 then I corrected him on this point. Im sure youve got it on tape somewhere. If you have could you send me a copy 'cos I havent. Having said this, it does not mean that the drawee would not subsequently bounce the cheque as being out of date, but, and I say again, it was not down to the collecting bank to stop you asking them to collect it. What they could have done is to tell you that the cheque was out of date, but still sent the cheque for collection, thereby giving you the chance to get the drawer to give the drawee the written authority to pay the cheque on presentation.
As for the Abbey National, well what do you expect them to know about banking?
According to Abbey (no National now, JB), you have to sufficient cleared funds in your account *the day before* to prevent your cheque from bouncing - paying in cash by the close of business on the day of presentation is not sufficient. This is because Abbey is not a bank?
In message , Doug Ramage writes
Actually, it still is Abbey National plc. Abbey is just a brand name.
Without a hint of irony, "Doug Ramage" astounded uk.finance on 04 May 2004 by announcing:
It is a bank these days, is it not?
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