Bounced cheque and Ulsterbank.

one4one

I was working for a company in August 2011 and I was paid €1,500 for August. I lodged the cheque into my Ulster bank a/c, the cheque cleared after 5 days. I spent the money on bills and rent. Next thing I know the cheque returned to me unpaid and I was left with arrears on my account of €1,500

My current account didn't have an overdraft facility and I never asked for one. The company that wrote the cheque refused to pay up and I was let go as they employed someone else on a lower rate. The cheque I was paid with was from a different Irish bank to mine.

I would of been happier if the cheque never cleared at all, then now owing money to the bank. Is this normal that a cheque would clear after 5 days with the funds available to spend but then still come back unpaid?

It is over a year now since the bounced cheque, can I still pursue the company for the money I'm owed? Could I do it through the small claims court after a year has passed?

When I questioned ulsterbank about clearing the cheque after 5 days and giving me access to the funds, all I was told is that my account is now in arrears and it has to be paid.

All advice appreciated and thanks in advance.

coylemj

Your former employer still owes you the money and you in turn owe the money to Ulster Bank.

The fact that Ulster Bank allowed you to draw on the account was just a facility they extended to you because they trusted you as a customer, it didn't mean that they were taking on board the risk if it clearing or not, that's not how banks work.

one4one

coylemj wrote: »

Your former employer still owes you the money and you in turn owe the money to Ulster Bank.

The fact that Ulster Bank allowed you to draw on the account was just a facility they extended to you because they trusted you as a customer, it didn't mean that they were taking on board the risk if it clearing or not, that's not how banks work.

I'm happy to pay Ulster Bank what they are owed, the funds still took 5 days to clear. Just wish it bounced with no access to the funds at all as then my credit rating wouldn't be at risk.

seb65

coylemj wrote: »

Your former employer still owes you the money and you in turn owe the money to Ulster Bank.

The fact that Ulster Bank allowed you to draw on the account was just a facility they extended to you because they trusted you as a customer, it didn't mean that they were taking on board the risk if it clearing or not, that's not how banks work.

Actually, the five days waiting period is to ensure the money clears in the account. That's exactly how banks work.

Five days, afaik, is the maximum waiting period. That your cheque "bounced" after that period seems a bit odd to me, that's what the waiting period is for.

Why did you wait more than a year to act on this?

one4one

seb65 wrote: »

Actually, the five days waiting period is to ensure the money clears in the account. That's exactly how banks work.

Five days, afaik, is the maximum waiting period. That your cheque "bounced" after that period seems a bit odd to me, that's what the waiting period is for.

Why did you wait more than a year to act on this?

That's why I questioned funds being available then becoming unpaid after 5 days. I pursed the guy who owed me the money for 6 months by calling to his house. I taught it could be sorted face to face.

One of the reasons I didn't pursue it legally is because he said he would say I owed him money for damage caused to a machine which of course I didn't cause.

So now I'm going to try take it to the small claims court.

Milk & Honey

one4one wrote: »

So now I'm going to try take it to the small claims court.

It has nothing to do with the small claims court. It is a matter for the District Court or the Rights Commissioner for unpaid wages.

one4one

Milk & Honey wrote: »

It has nothing to do with the small claims court. It is a matter for the District Court or the Rights Commissioner for unpaid wages.

Would it be worth my while to go after €1500 in the district court?

testicle

one4one wrote: »

Would be worth my while to go after €1500 in the district court?

It'd be worth €1500 I suspect.

Milk & Honey

one4one wrote: »

Would it be worth my while to go after €1500 in the district court?

Suing on a cheque is relatively simple. You are probably too late for the Rights Commissioner.

RandolphEsq

Am I correct in saying that an overdraft does not affect credit rating?

Our man in Havana

So long as you stay within the terms of said overdraft.