From: "Roger J. P. Jones" 
Newsgroups: uk.finance uk.legal
Subject: Re: cheque 'guarantee'?
Date: Thu, 1 Jul 2004 15:39:49 +0100

In message <2kif7fF2nlg4U1@uni-berlin.de>, Mike  writes
>"cqmman"  wrote:
>
>>"Mike"  wrote in message
>>> "Mike"  wrote:
>
>>> >someone wrote me a cheque for £100 with a 'guarantee' card with £100
>>limit.
>>> >
>>> >the cheque was returned unpaid with the comment 'no account'
>>> >
>>> >i assume this means person was writing cheques after the account was
>>closed.
>>> >just a guess.
>>> >
>>> >i took him to court and got judgement by default however thats not the
>>> >point. he has moved now and i don't know where.
>>> >
>>> >i also reported him to police for possible crime but never heard a thing
>>> >back.  i mean if he is writing cheques on a closed account obviously that
>>is
>>> >a crime.
>>> >
>>> >question is.. should I take this up with my bank / his bank as the cheque
>>> >was guaranteed.. i mean surely i should get the money no matter what.  it
>>> >was then who trusted him with a CG Card not me!
>>> >
>>> >Maybe i should write to his bank?  Anyone know the situation?
>>>
>>> Yes, you've lost £100. Chalk it up to experience, don't do it
>>> again, and move on. Seriously.
>>
>>So does that mean that a guarantee card is effectively useless?
>
>Yes and no.
>
>The "guarantee" works if everything else in respect of the
>account is in order. However, I have known a bank return
>"guaranteed" cheques from a long standing and respected customer
>who then fell on hard times and had his account suspended. So
>closed accounts, fraud, etc..  You've got no chance.
>
>Furthermore, there's no point in persuing as all that time,
>energy and money invested as simply being spent to no avail. The
>police genuinely don't have time to prioritise these things, the
>courts award judgement against a ghost, etc..
>
>*If* the original account was all in order, it might be worth
>contacting the banks' ombudsman and/or independent bodies ie:
>http://www.ibas.co.uk/index.htm
>
>Regards,

After having only had a debit card (So always keep my account in 
"CREDIT")

I recently applied same bank for a "credit" card (approved still waiting 
for it) not because I am so mad as to borrow money (living on SS). 
Certainly not at some mad rate like 15.9%, but because when perching 
goods I understand if them is faulty paying by credit cards offers a 
simple way to stop payment.

Are their any other advantages or disadvantages anybody knows of before 
I start using it?


-- 
Roger J. P. Jones