When will a cheque be considered bounced by bank?

[Spycraft]

Any MCFers out there have been in similar situation as shared below and willing to share your experiences:

 

I have left my last job 2 weeks ago. On the last day with the company, I have received a cheque as settlement for the salary outstanding. The cheque was post-dated to 31 Oct 2007 as the company did not have sufficient funds to pay me at that time.

 

Assuming I deposit the cheque on 31 Oct morning for clearing and the amount is reflected in the holding section when I check my account through ATM in the afternoon, may I conclude that the cheque did not bounce and that the funds will be credited to my bank account the next day (01 Nov)?

 

If not, at which stage will the bank consider the cheque as bounced?

[Apollo]

31st October haven arrived yet.

 

But if u present it in the morning at the same branch, technically speaking, u can obtain it by 2pm on same day.

 

At wat stage check will bounce? not necce insufficient $$

 

amount and figure does not tally.

 

name/ amount not legible.

 

signature incorrect/ insufficient signatory.

 

date does not tally.

[Silver_blade]

It's doesn't mean it's cleared. Have to wait till the following day. If the cheque bounce...it will reflect in your statement as eg. 'deposit $X' on 31 Oct and 'Withdraw $X' on 1 Nov.

[Passion]

i got this situation before.if they say don't bank in before 31th,best is to follow the advice.why i say so?Cuz if you do it in the morning,and at your ledger balance is updated,but if the cheque bounce,you will need to go back to the company to get a new one.waste effort and time.Best is to wait until 31th after 3.30pm then bank.A company account wouldn't have insufficient funds,unless that company is a chui company.If not wrong,a few MCF bros here got mention before,coporate account should have overdraft up to a certain limit.unless your company use up that overdraft.

[Yoongf]

U cannot bank in a post dated chq.

If u bank-in in time for the 31 Oct closing (3.30pm), then next day after 2pm will the funds be available.

 

This SOP is for normal cheque. If chq is going to bounce, on 1 nov, sometime ard 10-11am.. bank will call the issuer tell them by noon need to top up. If 2pm u see no deposit then chq consider bouce.

 

If u were given a cashier's order or cash chq, then go to same bank branch as stated in the chq on 31 Oct. Can cash out immediately.

[Nkps]

wah looking at your situation, i dunno how to conclude, perhaps you can enlighten me?

 

1) u draw a damn big peanut pay

 

2) your ex company closing down real soon

 

as for your qn, very easy lah, if u bank in on the day the cheque is dated, and the nxt day after 2pm u still not receive the $$$, likely the cheque dishonour liao. Good luck.

[Spycraft]

Thanks for your input, Apollo

 

At wat stage check will bounce? not necce insufficient $$

I really hope that the company honour its promise to get funds

 

amount and figure does not tally. Confirm correct

 

name/ amount not legible. confirm legible.. at least for me..

 

signature incorrect/ insufficient signatory. Unlikely as there were cheques cleared previously with similar signatures

 

date does not tally. Noted..

[Spycraft]

noted

[Spycraft]

well.. long story..

 

it all started when the company (A) embarked on its ambitious plans to expand its operations.. the company 'absorbed' 8 staff from another company (B) who had ceased operations during to financial difficulties. I was 1 of the 8 staff that had moved from company B to A. I had also 'lost' 1.5 mths of salary owed to me by company B in the process.

 

My 5-mth stay in Company A had been extremely unplesant, in terms of pay cheque punctuality. Salary for the 1st month was punctual (month-end) but salary for the rest of the months were not given by month-end. They were only given out much later. Best of all, there was no announcement from the management that the pay cheques will be delayed. When I requested to speak to the MD after the 1st encounter, then did he acknowledged that the company had shortage of funds due to payment delay from customers. However, he assured me (and the rest of the 8 new employees) that he had backup plans should the situation continue or turn bad. As the months go by, I saw no positive results in the financial status of the company A and had zero confidence in his leadership. I have since left company A and had moved on to another job.

 

To answer your queries, I guess Company B did not plan well enough financially when 8 of us are hired. My pay cheque is definitely not the highest.

Edited October 28, 2007 by Spycraft

[Nkps]

anyway, if the cheque bounce, u can take legal action against them so not to worry at all... unless u are damn desperate for $$$ now

[Sabian]

Seriously, your ex-company has issues.

 

If you are aware that your company has cash-flow problems, suggest you go to your bank (once it opens) and let them know that you want this chq to be earmarked and you will know of the fate of the chq on the day itself. (Do not opt for the earmark that informs you the fate of the chq the next day but after 11am and before 2pm)

 

There will be an admin fee involved but if it is your pay we are talking about, this will give you some headstart over the other chqs that are being presented to your ex-company's account.

 

When there is insufficient funds, some chqs will be returned. While it does not guarantee your chq will be honoured, it saves you time and you can take action on 31/10 itself if you need to.

 

And don't let the counter staff at the bank dissuade you. It is a troublesome request but MAS has provided this function in the chq truncation system.

 

Lastly, if you "know" that your company has funds in its accounts, then just go ahead and deposit as per normal.

[Apollo]

u doin wat type of work?

[Penthousepauper]

Hopefully, your ex-company don't stop payment on the cheque. If cheque bounced, go to a lawyer immediately, and seek legal redress.

[Thug]

Any MCFers out there have been in similar situation as shared below and willing to share your experiences:

 

I have left my last job 2 weeks ago. On the last day with the company, I have received a cheque as settlement for the salary outstanding. The cheque was post-dated to 31 Oct 2007 as the company did not have sufficient funds to pay me at that time.

 

Assuming I deposit the cheque on 31 Oct morning for clearing and the amount is reflected in the holding section when I check my account through ATM in the afternoon, may I conclude that the cheque did not bounce and that the funds will be credited to my bank account the next day (01 Nov)?

 

If not, at which stage will the bank consider the cheque as bounced?

 

Hmmm...they will check for any mistake on the cheque then process, but not about the sufficient amount in the drawer's bank. (drawer as in the one who issue the cheque) At this period of time, u will still able to see the amount in the holding section. But if the cheque is not cleared for insufficient funds, it will be taken out.

 

End of story, seeing the amount in the holding section doesn't mean cleared.

Edited October 28, 2007 by Thug