Dave Paget

Hi,

Not really related to Visa's, but I figured that this would be the best
place for me to get an educated answer to a current quandry i'm in.

Recently I completed some work for someone in America.
The work was worth about $600.

It took the person a while to send the money, but they eventually did,
however for some bizarre reason (having asked for western union
details) they send a cheque with just the surname (and a space for the
first name) to the western union branch my wife had speficied, they
could have posted a cheque to my wife, or used western union as
they had asked to use W.U. - They didn't even let me know for 1.5
weeks that the cheque was gone out. And the cheque has no covering
note, so W.U. had no idea what it was about and just put in the safe.

Finaly I found out that the cheque (for $400) was at this branch, the
person in question stated that I should email to let them know if she
could check and collect the cheque... or if it should be cancelled.

My wife collected the cheque and put it in her bank. I informed the
same day that this was fine.

The money was now in my wife's account - so she spent $200 of it.

Then I recieved an email 4 or 5 days later stating that the cheque was
cancelled and another would be sent out... with the new amount, and
compensation for any fines etc...

Of course - my wife had the money, and she'd spent some of it... so
the cheque couldn't have been cancelled.

2 days later the bank card won't process at the grocery store and the
bank tells her she's overdrawn...

Now it says she has a $84 overdrawn fee for being $200 overdrawn,
and of course she can't get any money out...............

So.... my question..............

How the hell is this possible? Surely once money is deposited into your
account you cannot cancel the cheque and recall it? and surely if my
wife spent money that was placed within her account, how the bank
charge her for spending money that was there if they then recall it?

Anyone in the US want to tell me what the hell all that is about?
Surely that's an unlawful practice? In the UK something isn't credited
to the account until after it's cleared, once it's cleared it can't be
returned
or recalled unless the cheque was a bank error/fraud... if a cheque is
processed then it's up to the individual parties and the legal system to

sort things out... not taking the cleared cash back, charging a "return
fee"
(why the hell does she get charged that and not the guy asking for it
back
anyway?) and then screwing her on her OD....

Quoting my wife:
"I'm looking at my account online.....it says they took the 400 back +
6.00 "return fee" + 84.00 "Overdraft fee"!!!!"

Any assistance would be greatly appreciated.
I just can't believe a bank can dip into an account and deduct back cash

on a cheque that was cancelled after cash was credited.

Dave Paget

Oh yeah.......

Is it likely that due to the fact her next paycheque will be AFTER
7 days - that she's gonna have another fine for being OD, that it
will be larger than the previous one..... and that she's in the hole
now? and they will just keep adding?

Dave

dave paget wrote:

    > Hi,

Dave Paget

Another note:

My wife is being charged $5 a day..... for the OD, I just learnt that.

The bank said it is her fault for depositing the cheque (what was she
meant to do with it?) and that it's between her and the issuer.......

bizarrely the cheque was deposited on the 21st and the money was
recalled from her account on the 29th.....

Dave

dave paget wrote:

    > Oh yeah.......
    > Is it likely that due to the fact her next paycheque will be AFTER
    > 7 days - that she's gonna have another fine for being OD, that it
    > will be larger than the previous one..... and that she's in the hole
    > now? and they will just keep adding?
    > Dave
    > dave paget wrote:
    > > Hi,
    > >

Sylvia Ottemoeller

The bank is waaaaay out of line. See
http://www.benjamindover.com/default.asp, particularly
http://www.benjamindover.com/complain.asp, on how to handle this.

Eventually, you should get all your money back. The bank should not be
harming you for what is the bank's problem.

"dave paget" wrote in message
news:[email protected]...
    > Another note:
    > My wife is being charged $5 a day..... for the OD, I just learnt that.
    > The bank said it is her fault for depositing the cheque (what was she
    > meant to do with it?) and that it's between her and the issuer.......
    > bizarrely the cheque was deposited on the 21st and the money was
    > recalled from her account on the 29th.....
    > Dave
    > dave paget wrote:
    > > Oh yeah.......
    > >
    > > Is it likely that due to the fact her next paycheque will be AFTER
    > > 7 days - that she's gonna have another fine for being OD, that it
    > > will be larger than the previous one..... and that she's in the hole
    > > now? and they will just keep adding?
    > >
    > > Dave
    > >
    > > dave paget wrote:
    > >
    > > > Hi,
    > > >

Mayo

I believe the bank is correct. The cheques are received pending
collection and sometimes they give you temporary use of the funds, but
reserve the right to collect them back from you if the check is
bad(they could have waited until it celared to release the funds). She
should check the customer agreement for her account it will be clearly
spelled out and believe me it will comply with all US laws they hire
good lawyers to ensure that.

In the UK laws might be different, but in the US even if they lose a
check and admit it you are still responsible for obtaining a duplicate
check (some banks will just eat it in small cases say 50-100 so as not
to annoy their clients). If this was not the case you could send a
check to your friend he will deposit it and get the money out and at
the same time you will stop payment on the check and split the
proceeds, and keep doing it with different friends until you were
richer than Bill Gates

You of course can complain to the Bank and have the fees waived, but
they will not put the 400 dollars back into your account. Unless your
wife's relationship to them is worth more than $400 and if she carries
such low balances it will not be the case

The people responsible for the problem are either Western Union or the
person who sent the check - whoever initiated the canceling of the
check. Document all fees you were charged and provide proof to them.
Of course the issue is getting them to pay it - if they choose not to
reimburse you for the fees, you will need to sue them and even then if
you get a judgment in your favour you will still have the problem of
collecting the money.

Good luck

MrsLondon

Surely cheques/checks only take 3 or 4 days to clear? It seems this one was cancelled AFTER that?