Cheques dishonoured by Halifax due to signatures not matching

[desperatedan]

Hi Folks

I moved to Halifax Bank last year to avail of their better Current Account, but I am now feeling that this was a bad decision.

As per the thread title, I have been severely embarrassed by this bank recently, whereby they have taken it upon themselves to "dishonour" two cheques written by me to the same payee.

There were and are sufficient funds in my account to meet these cheques.

The second one was a reissued cheque for the same service as that dishonoured in the first place.

I am totally distraught, as the person to whom the cheques has done a job for me, and deserves to be paid. The funds are in my account.

The reason they say they bounced the first cheque was because they say the signature did not match that which they have on file. They say this is for my own security, and to an extent can see their point.

But I have just discovered that the second cheque has again been "dishonoured", to my total amazement, annoyance and embarrassment. I do not know why this is, as I can't contact them until Monday.

Can I just reiterate, there are sufficient funds to meet this cheque, and I am not relying on an overdraft.

Any advice would be genuinely appreciated.

I am indeed Desperate Dan.

 

[ClubMan]

Re: Cheques dishonoured by Halifax bank

Perhaps your signature on file simply does not match your signature as you sign it today?

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

Perhaps your signature on file simply does not match your signature as you sign it today?

I did ask for advice, and perhaps this is meant as such.

But it will not help me when I have to face a person, for the second time in a two-week period, to ask him to either represent the cheque, or accept another cheque from me.

In the circumstances, would you accept a cheque for a third time? Or would you feel this guy has no money to pay me?

Just to reiterate, I already have lodged a complaint on foot of the first instance, and Halifax know that I wish to have funds, as shown on my legitimate cheque, paid to the person named on my cheque.

What am I supposed to do, contact this bank each time I write a cheque, advising them of the fact?

 

[markpb]

Re: Cheques dishonoured by Halifax bank

Find out why the second cheque bounced, like Clubman says, it's probably for the same reason. In the meantime, get the recepients bank details and transfer the money to him.

 

[10romans]

Re: Cheques dishonoured by Halifax bank

Why did they not phone you!. If you have the money in your account and you have written a cheque to the same payee twice it seems ridiculous that they would not phone you. Change banks!

I wonder are they minding their own balance more than yours?

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

Why did they not phone you!. If you have the money in your account and you have written a cheque to the same payee twice it seems ridiculous that they would not phone you. Change banks!

I wonder are they minding their own balance more than yours?

Thanks 10romans. It certainly gives one reason to be suspicious.

Since I moved to Halifax a year ago, I have written only 9 cheques, with no problems until now. This was a particularly large amount, several thousand €'s, so one would be suspicious.

In their apology e-mail response to my complaint for the first occasion, they claim they called my mobile number at 16.30 on the evening they dishonoured the cheque.

I was on my way home from work at that time, driving. There was a private call, with no number displayed, at that time, when I checked my "missed calls".

No voice message was left for me to contact the bank. No SMS message was sent. Also, they have my e-mail address, and I got no e-mail.

I can find no record for the second occasion at all, but I have to await their reply to my second complaint e-mail to find out if they tried to contact me on the second occasion. I have asked for this to be escalated to a Senior Cust Relations Manager, as per their procedure.

My real dilemma now is how to face a person, who has had great patience to date, and who may be relying on this money to pay staff, stay in business, etc.

I have demanded that the Bank contact him, I have given them his number in my second complaint e-mail, and reach an accomodation with him which makes it abundantly clear that there is no problem with my account.

I am concerned regarding my own good name also, as the impression could easily be given that I am an unreliable payer.

I will report back on whatever happens.

 

[rmelly]

Re: Cheques dishonoured by Halifax bank

OP, can you confirm whether you have actually addressed the issue of the signature? It's not clear that you have, so if not, why not?

Would it not make sense on your part to replace the sample signature they have on file to prevent this being an issue?

 

[ajapale]

Re: Cheques dishonoured by Halifax bank

Why dont you pay with a bank draft while you are waiting to resolve the issue with the cheques?

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

Why dont you pay with a bank draft while you are waiting to resolve the issue with the cheques?

I will either pay the person in question by Draft or in Cash, this is priority number 1.

However, I am going to insist that the bank bear the cost of the draft if this is the way I go.

I am reluctant to withdraw so much money, for obvious reasons. This is the reason cheques were invented, is it not. However, I will if I have no other alternative, as this person must be paid by Monday if at all possible. This will also mean going on a journey of several miles to his place of business carrying a lot of dosh.

I will go as far as I have to with respect to this Bank dishonouring my legitimate cheques.

As for the signiture issue, I can't understand it.

I have only ever issued 9 cheques with Halifax. Previously, with AIB for around 25 years, I never as much had one bounced cheque for any reason, let alone signature.

I am now very sorry that I switched, as the only reason was AIB did not pay as much interest on Current Account balances.

 

[DavyJones]

Re: Cheques dishonoured by Halifax bank

got a cheque from a client once and when I went to the bank they could not cash it because of the signature. Although to be fair to the bank (AIB) they did ring the account holder and they confirmed that they issued cheque. It was cashed then.
I would change bank.

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

got a cheque from a client once and when I went to the bank they could not cash it because of the signature. Although to be fair to the bank (AIB) they did ring the account holder and they confirmed that they issued cheque. It was cashed then.
I would change bank.

Hi DavyJones

That is exactly the reaction I would have expected from the Bank (Halifax).

They seem to be content to bounce two cheques from me to the same payee, without ever having spoken to me.

In fact the second cheque was bounced even though I had gone through their complaints procedure and I have a complaint ref number, and I told them I would be issuing another cheque to pay the person.

I will be moving Bank.

 

[z103]

Re: Cheques dishonoured by Halifax bank

Why can't you just transfer the funds via a credit transfer?
Cheques are old hat.

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

Why can't you just transfer the funds via a credit transfer?
Cheques are old hat.

Thanks very much for the helpful advice, that is another option I will persue with the person who did the job for me initially, and who requested payment by cheque, which is refreshing in the line of business, where some would request payment "in cash".

But this really does not help me explain why two cheques written by me in good faith to this person have been bounced by my Bank, with all the ensuing embarrassment and hassle this has caused.

 

[Bubbly Scot]

Re: Cheques dishonoured by Halifax bank

As far as I am aware, the bank will mark the cheque in some way. If there are insufficient funds it's usually stamped "refer to drawer" or words to that effect, if there is a different problem it will be stamped differently.

Take a look here [broken link removed]

Hope that helps spare your blushes.

 

[Brendan Burgess]

Re: Cheques dishonoured by Halifax bank

Dan

You seem to resent the advice being given to you by two posters as unhelpful.

You seem to think that the bank should not be comparing signatures on file with the signatures on the actual cheques.

The mistake is primarily yours.

After the first incident, did you compare the signature on the cheque with the signature on file in the bank?

After the first problem, you should have got a bank draft to ensure that it did not happen again. Or alternatively, you should have done a credit transfer.

I would not like to see your reaction if you saw many thousands withdrawn from your bank on a forged cheque.

A bank is obliged to bounce a cheque when the signatures don't match. It was nice of them to call you, but if they did not get you, what can they do. Honour the cheque and hope for the best? Do you really expect them to put a note on your account - don't bounce any cheques from this guy because his signature is variable?

Make a formal complaint if you like. You will not be happy with their response. Then complain to the Financial Services Ombudsman. I would imagine that they will tell you to cop onto yourself.

Brendan

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

As far as I am aware, the bank will mark the cheque in some way. If there are insufficient funds it's usually stamped "refer to drawer" or words to that effect, if there is a different problem it will be stamped differently.

Take a look here [broken link removed]

Hope that helps spare your blushes.

Hi Bubbly Scot.

Can I just say that your link has been the best advice I have received here, thank you so much for it.

Definitely the Bank told me on the first occasion the problem was "not usual signature", so it is ominous to see from your link that this "usually indicates a forgery" and that the payee should "Contact the drawer (issuer) first - then contact the police."

Luckily, as I keep an eye on my account on-line, I picked up on the dishonour before my client did, so I contacted him and he agreed to accept a second cheque.

I have made a formal complaint to Halifax regarding the second instance, and this has been escalated to a senior person.

It remains to be seen whether I will be happy or not with the response.

BTW, I have now arranged a direct electronic payment to my client, who again has been very understanding of my predicament, so blushes have been spared.

 

[ubiquitous]

Very simple solution, move back to your old bank. More expensive perhaps but at least you should avoid this sort of messing, which presumably didn't happen previously?

 

[desperatedan]

Re: Cheques dishonoured by Halifax bank

Dan

You seem to resent the advice being given to you by two posters as unhelpful.

Not at all, I do not know which posters you are referring to. I have welcomed all advice given, as I welcome yours.​

You seem to think that the bank should not be comparing signatures on file with the signatures on the actual cheques.

Not so, as indicated in my OP "They say this is for my own security, and to an extent I can see their point."​

The mistake is primarily yours.

What mistake? I am not aware of any mistake made by me.​

After the first incident, did you compare the signature on the cheque with the signature on file in the bank?

No, but I should have. Not sure what the procedure is with Halifax though, as I am primarily an on-line customer. Could I have walked into the nearest Branch and asked for this service?​

After the first problem, you should have got a bank draft to ensure that it did not happen again. Or alternatively, you should have done a credit transfer.

Agreed. This is what I have now done. In hindsight, I should have done this after the first incident.​

I would not like to see your reaction if you saw many thousands withdrawn from your bank on a forged cheque.

A bank is obliged to bounce a cheque when the signatures don't match. It was nice of them to call you, but if they did not get you, what can they do. Honour the cheque and hope for the best? Do you really expect them to put a note on your account - don't bounce any cheques from this guy because his signature is variable?

If they left an urgent message on my voice mail, or even e-mailed or SMS, this could have been avoided.​

Make a formal complaint if you like. You will not be happy with their response. Then complain to the Financial Services Ombudsman. I would imagine that they will tell you to cop onto yourself.

I have made a complaint, and asked to be provided with copies of the cheques in question. I don't propose to go to the FSO, but I do not think their response would be as dismissive as you suggest.​

Brendan

Brendan

I am happy now that my client has been paid, which was my first priority.

I accept that I could have handled the situation differently after the initial problem, but hindsight is a great thing.

I hope you appreciate my comments above, which are genuine and not meant to be critical.

I really do appreciate all the advice given here, which I have taken on board, and have acted upon.

Thanks for all help folks.

 

[Brendan Burgess]

The first mistake you made is that the signature on your cheque does not appear to match the signature on the bank's records. I would very much doubt that Halifax are just bouncing your cheques for the craic.

The second mistake that you made is that you did not get a draft to pay your supplier.

The third mistake is that you repeated the first mistake.

But you are trying to blame Halifax for all this. I really don't think it's their fault at all. Now if the two signatures do match, then you have cause for complaint.

Brendan

 

[desperatedan]

The first mistake you made is that the signature on your cheque does not appear to match the signature on the bank's records. I would very much doubt that Halifax are just bouncing your cheques for the craic.

The second mistake that you made is that you did not get a draft to pay your supplier.

The third mistake is that you repeated the first mistake.

But you are trying to blame Halifax for all this. I really don't think it's their fault at all. Now if the two signatures do match, then you have cause for complaint.

Brendan

Brendan

I know that my point of view is entirely subjective, as I am directly involved in what has been a genuinely traumatic series of events.

This is a first for me, and I have no explanation as to why Halifax have suddenly deemed my signature to differ from what they have on file, that is a matter for further investigation.

As I have only ever written 9 cheques prior to this, with no problems, I do think there is a question mark over Halifax's procedures at the very least.

From my point of view, there is no mistake on my side.

Is it not possible, in your view, that a Bank can make a mistake?

Surely recent events would tend to support my point of view?

You have entirely prejudged the issue on the Bank's side, even to the extent of their attempt to contact me, one phone-call, made during my home-bound commute, with no voice message, text or e-mail follow-up.

I have already conceded that I could have handled the payment to my client in a different manner, but we all must learn lessons from experience.

I certainly appreciate advice, but I don't appreciate the matter being pre-judged in the manner you have just done.

There is no point in being found innocent, after the hanging has already taken place.