ChatterBank4 mins ago
bouncing cheques illegal?
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is knowingly bouncing a cheque illegal particularly if ur account has been closed?
all answer appreciated
all answer appreciated
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Yes - obtaining goods by deception.
http://www.thesun.co.uk/sol/homepage/news/mone y/article268456.ece
http://www.thesun.co.uk/sol/homepage/news/mone y/article268456.ece
Deliberately bouncing a cheque is an offence under Section 2 of the Fraud Act 2006, which covers 'fraud by false representation'. The 'false representation', in this case, would be the implication that the cheque would be honoured. The maximum penalty for the offence is 10 years imprisonment:
http://www.statutelaw.gov.uk/content.aspx?LegT ype=All+Legislation&title=fraud+act&Year=2006& searchEnacted=0&extentMatchOnly=0&confersPower =0&blanketAmendment=0&sortAlpha=0&TYPE=QS&Page Number=1&NavFrom=0&parentActiveTextDocId=29224 56&ActiveTextDocId=2922456&filesize=44059
Chris
http://www.statutelaw.gov.uk/content.aspx?LegT ype=All+Legislation&title=fraud+act&Year=2006& searchEnacted=0&extentMatchOnly=0&confersPower =0&blanketAmendment=0&sortAlpha=0&TYPE=QS&Page Number=1&NavFrom=0&parentActiveTextDocId=29224 56&ActiveTextDocId=2922456&filesize=44059
Chris
The question that a court would have to consider is "Was there a definite intent to benefit through misrepresentation?". I could write you a cheque for a billion billion billion pounds 'for a lark'. No court would convict me of fraud because it's obvious that I wasn't trying to pretend that the cheque would actually be honoured by my bankers
However, if you've got a (more normal) cheque which has been dishonoured (especially if the account had already been closed when the cheque was written), a court would probably see this as a clear indication that the person who wrote the cheque was seeking to benefit from false representation.
Chris
However, if you've got a (more normal) cheque which has been dishonoured (especially if the account had already been closed when the cheque was written), a court would probably see this as a clear indication that the person who wrote the cheque was seeking to benefit from false representation.
Chris
(2-part post):
It's hard to see how an account could be closed without the account holder being aware of it. By giving you the cheque, the guy was representing
(i) that the account actually existed ; and
(ii) that there were sufficient funds in the account for the cheque to be honoured.
From your account of things, I find it hard to understand how the guy could really have believed these two things to be true. Of course, it's possible (but extremely unlikely) that the bank might have made some sort of gigantic c0ck-up. Equally, it's possible (but again unlikely) that somebody could have cloned his debit card and emptied all of the funds out of the account without his knowledge.
How you approach things from here depends upon your relationship with the guy. The simplest would seem to be to state a fact ("Your cheques has bounced . . .") and ask a perfectly reasonable question (" . . .so when am I going to get my money?"). Nothing which is said there accuses the guy of anything; it just states the obvious and follows it with a fair question.
It's hard to see how an account could be closed without the account holder being aware of it. By giving you the cheque, the guy was representing
(i) that the account actually existed ; and
(ii) that there were sufficient funds in the account for the cheque to be honoured.
From your account of things, I find it hard to understand how the guy could really have believed these two things to be true. Of course, it's possible (but extremely unlikely) that the bank might have made some sort of gigantic c0ck-up. Equally, it's possible (but again unlikely) that somebody could have cloned his debit card and emptied all of the funds out of the account without his knowledge.
How you approach things from here depends upon your relationship with the guy. The simplest would seem to be to state a fact ("Your cheques has bounced . . .") and ask a perfectly reasonable question (" . . .so when am I going to get my money?"). Nothing which is said there accuses the guy of anything; it just states the obvious and follows it with a fair question.
If you want a more formal, and challenging, approach, send the guy a letter (by recorded delivery) along the lines of the following:
"Dear John Smith,
Your cheque, dated xx/xx/xx, for the sum of �xxx.xx has been returned to me by my bankers, marked 'refer to drawer'.
It is my belief that you may have written this cheque in the full knowledge that there were insufficient funds in your account for the cheque to be honoured by your bankers.
I write to demand immediate payment of this amount, in full. I will only accept payment in cash or by banker's draft. TAKE NOTICE that if payment is not received within 14 days it is my intention to
(i) commence proceeding against you in the County Court, seeking payment of the amount owed to me ; and
(ii) notify Blogshire Police of an apparent contravention, by you, of the provisions of Section 2 of the Fraud Act 2006 (which refers to 'fraud by false representation', for which the maximum penalty is ten years imprisonment.
C. Cuddler"
Chris
"Dear John Smith,
Your cheque, dated xx/xx/xx, for the sum of �xxx.xx has been returned to me by my bankers, marked 'refer to drawer'.
It is my belief that you may have written this cheque in the full knowledge that there were insufficient funds in your account for the cheque to be honoured by your bankers.
I write to demand immediate payment of this amount, in full. I will only accept payment in cash or by banker's draft. TAKE NOTICE that if payment is not received within 14 days it is my intention to
(i) commence proceeding against you in the County Court, seeking payment of the amount owed to me ; and
(ii) notify Blogshire Police of an apparent contravention, by you, of the provisions of Section 2 of the Fraud Act 2006 (which refers to 'fraud by false representation', for which the maximum penalty is ten years imprisonment.
C. Cuddler"
Chris
Substitute "account closed" for "refer to drawer" in my draft letter.
Change "It is my belief that you may have written this cheque in the full knowledge that . . ."
to continue with
"the cheque would not be honoured because the account, upon which the cheque was drawn, was closed (or likely to become so before the cheque could be presented)".
Otherwise the letter is still OK.
Your bank might give you some general advice but it's unlikely to amount to much more than "threaten the guy with civil action and, if you think that you've been deliberately wronged, have a word with the police". In essence, that's what my post says anyway.
Chris
Change "It is my belief that you may have written this cheque in the full knowledge that . . ."
to continue with
"the cheque would not be honoured because the account, upon which the cheque was drawn, was closed (or likely to become so before the cheque could be presented)".
Otherwise the letter is still OK.
Your bank might give you some general advice but it's unlikely to amount to much more than "threaten the guy with civil action and, if you think that you've been deliberately wronged, have a word with the police". In essence, that's what my post says anyway.
Chris
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