cheque clearance...5 DAYS!!!

This is more of a vent/rant than a question/comment.  What is up with the 5 working days clearance for a cheque???  I deposited my husband's paycheque for his work as an extra in a movie and it immediately showed up in the account under 'balance' when I checked the account online.  So we used some of this money and guess what...OVERDRAFT this morning!  I was livid - called them up and they said, yep £25 charge for each transaction since it was overdrawn and even if you put money in TODAY it still won't matter (was overdrawn over the weekend I guess).  Another rant - why the heck can you take money out of your account if you don't have any available funds??  None of my US accounts will let me take anything out if I am overdrawn!  Can you tell I'm just a bit peeved about this?? 

I KNOW!!

We have experienced the 5 day clearance from Barclays and like you, we learned the hard way. What I don't get is that if I deposit a check written from a Barclays account into our Barclays account, it still takes 5 days! Also, there is no way to cash a check unless you go to a check cashing counter where they take a percentage. If there is any bank that doesn't have these policies, I would love to know.

Do you mean overDRAFT or overDRAWN? They shouldn't charge you anything but interest if you're just into your overdraft. I've occaisionally gone over my overdraft and usually the bank does let that go through because one of the requirements of an overdraft is making monthly deposits - so they know you're good for it eventually. Of course then they charge you for the priviledge 

The 5 day thing IS so irritating though. They're waiting for the cheque to clear the bank it was issued from before they give you the cash. DH and I both have Halifax accounts so we can transfer money back and forth with a bit more ease.


edited for excessive use of the word "overdraft"

If I'm not mistaken, British banks are being investigated for this type of delay (5 days). I saw something on the news a few months ago about it. It apparently doesn't happen in Europe to the same degree. Not only that, I've actually had a British bank tell me 'this isn't America, it's not all instantaneous here!'. Now, in the US I have had delays, but the statements about what is available and when are much clearer.

Do you mean overDRAFT or overDRAWN? They shouldn't charge you anything but interest if you're just into your overdraft. I've occaisionally gone over my overdraft and usually the bank does let that go through if you have an overdraft because one of the requirements of an overdraft is making monthly deposits - so they know you're good for it eventually.

The 5 day thing IS so irritating though. They're waiting for the cheque to clear the bank it was issued from before they give you the cash. DH and I both have Halifax accounts so we can transfer money back and forth with a bit more ease.

Sorry - in my anger I typed OVERDRAFT but meant overdrawn.  And no, until this afternoon I did not have any overdraft on the account...which I was able to put on there in about 2 seconds online...v v frustrating!  I know it's really my fault for not knowing the rules, but 5 days is damn excessive...there's no reason for it in this day and age other than to make money!  They are making money on the interest they earn on all those deposits.

...and usually the bank does let that go through if you have an overdraft because one of the requirements of an overdraft is making monthly deposits - so they know you're good for it eventually. Of course then they charge you for the priviledge 

And yes, with an overdraft I can see why you can take money out of your account without having the funds available but if you don't have this overdraft protection?  I don't get how they will give you the money without it being in the account!!  It smacks to me of more money-making....

If I'm not mistaken, British banks are being investigated for this type of delay (5 days). I saw something on the news a few months ago about it. It apparently doesn't happen in Europe to the same degree. Not only that, I've actually had a British bank tell me 'this isn't America, it's not all instantaneous here!'. Now, in the US I have had delays, but the statements about what is available and when are much clearer.

Exactly my point.  One of my coworkers (who heard me ranting on the phone at the poor customer service person) told me the banking industry has been criticized about it but basically since all the ATMs etc are free, this is another way for them to make money...sorry for my frantic posts but I'm just so angry - at myself for not knowing about it, but also on the principle of it!

Five days is completely ridiculous in these days of instant computer communication between financial institutions. And, do UK banks do this (like US banks)? Each morning when they pull the previous days debits and credits to charge off to your account, they charge off ALL debits BEFORE they issue credits for deposits, so even if you make a deposit three hours before a debit which will overdraw your account, you're screwed! I hate banks!

so even if you make a deposit three hours before a debit which will overdraw your account, you're screwed!

That's happened to me before. It makes me FURIOUS.

That's happened to me before. It makes me FURIOUS.

And the officer at the bank who bore the brunt of my anger responded with "Well, I guess you should learn to live within your means, huh?" 

Five days is completely ridiculous in these days of instant computer communication between financial institutions. And, do UK banks do this (like US banks)? Each morning when they pull the previous days debits and credits to charge off to your account, they charge off ALL debits BEFORE they issue credits for deposits, so even if you make a deposit three hours before a debit which will overdraw your account, you're screwed! I hate banks!

I know for a fact banks do this, I have a friend who works for one. They will apply the largest debit first, then the next largest, so on before they apply the deposit so they will have a better chance you will overdraft. Sucks!

I know for a fact banks do this, I have a friend who works for one. They will apply the largest debit first, then the next largest, so on before they apply the deposit so they will have a better chance you will overdraft. Sucks!

 

Clearance can be very long-winded.  Going back a few years, I remember having a set-to with Barclays about the ridiculous time it took to clear a check which was drawn on another Barclays branch just a few miles up the road.  It was something like 10 days at the time.  A check I'd written out at the same time on my Florida account to a company in Michigan had been cleared through quicker than that, and that included two lots of overseas postage!

I'm not a fan of the way the banks operate these days.  I had a FirstDirect account  at one time, and they screwed up a direct debit, taking out what should have been monthly payments on two or three consecutive days, resulting in the account becoming overdrawn.    They credited everything back, but on the next statement were "Interest charged" and "Unauthorized overdraft fee."    It took about two months of letters and calls before someone grudgingly replied that "On this occasion they would waive the charges,"  as though they were being extremely generous by correcting something which had been their mistake in the first place. 

ooh yes we have been caught out like this too but there is a guy at our branch who seems to have appointed himself our personal banker, he nearly always calls us beforehand now so we can transfer money in to cover a transaction if necessary.

When my husband took out a loan they gave him a cheque and when  he deposit it in his account and it took 2 weeks to clear!!! I guess large amounts take a lot longer then 5 days