# NSF cheque, Can I attempt cashing it?



## Addy (Mar 12, 2010)

Our room mate bounced a cheque on us so we kicked him out. He is refusing to pay the $ he owes us. Rather than go to small claims over $200 I was wondering if there is a way to attempt cashing it again?

We bank at TD and the cheque is from an RBC account so I was hopjng to try and cash it at RBC.


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## KaeJS (Sep 28, 2010)

If I'm not mistaken, you _can_ do so if the cheque date is within 6 months of todays date. After 6 months, a cheque is considered to be "stale-dated" and the branch will not cash it. Your only chance at this point would be to put it into an ABM.

However, it is to my understanding that you must visit the branch or location specifically labelled on that cheque, as they are the "owner transit" of that person's bank account.

If the RBC Branch location is not on the cheque, call RBC's Customer Contact Centre toll free (1-800-769-2511), provide them with the numbers on the bottom of the cheque, and they will be able to look up the transit number and give you the address.


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## Just a Guy (Mar 27, 2012)

While I don't agree with the law, this may apply....

http://www.cbc.ca/news/story/2009/06/12/f-marketplace-cheques.html


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## KaeJS (Sep 28, 2010)

^Yeah, that guy got fired quick. Idiot. :stupid:


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## OptsyEagle (Nov 29, 2009)

Many years ago (over 25) I was given a final paycheque from an unscrupulous employer (reason I left), that bounced. I paid the bank (BMO) a small fee, something like $10. They held on to the cheque for 30 days and if the amount to cover my cheque was ever deposited into that account, they cleared it and put the money into my account.

It cashed on the 29th day. I bet it PO'd my previous employer immensely.


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## Spidey (May 11, 2009)

OptsyEagle said:


> Many years ago (over 25) I was given a final paycheque from an unscrupulous employer (reason I left), that bounced. I paid the bank (BMO) a small fee, something like $10. They held on to the cheque for 30 days and if the amount to cover my cheque was ever deposited into that account, they cleared it and put the money into my account.
> 
> It cashed on the 29th day. I bet it PO'd my previous employer immensely.


My wife used to work in collections and often used this procedure. Quite a few PO'd clients who didn't realize that this was possible.


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## m3s (Apr 3, 2010)

Cheques legislated by archaic century old rules? No wonder most of the developed world stopped using them decades ago.

Electronics transfers are instant, free and DO NOT BOUNCE in most of the developed world. Why we live in the past is beyond me


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## Addy (Mar 12, 2010)

mode3sour said:


> Cheques legislated by archaic century old rules? No wonder most of the developed world stopped using them decades ago.
> 
> Electronics transfers are instant, free and DO NOT BOUNCE in most of the developed world. Why we live in the past is beyond me


Yes yes mode, I believe everyone here knows about electronic transfers. But that's not the real point of your post is it. You are trying once again to show your lovely peacock feathers. Too bad it's not impressing anyone.


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## Addy (Mar 12, 2010)

OptsyEagle said:


> Many years ago (over 25) I was given a final paycheque from an unscrupulous employer (reason I left), that bounced. I paid the bank (BMO) a small fee, something like $10. They held on to the cheque for 30 days and if the amount to cover my cheque was ever deposited into that account, they cleared it and put the money into my account.
> 
> It cashed on the 29th day. I bet it PO'd my previous employer immensely.


Thanks OptsyEagle, do you or Spider (or anyone) know if this is something the banks still offer? I am going to go to RBC tomorrow and ask but was hoping to get some insight today if possible.


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## m3s (Apr 3, 2010)

Addy said:


> Yes yes mode, I believe everyone here knows about electronic transfers. But that's not the real point of your post is it. You are trying once again to show your lovely peacock feathers. Too bad it's not impressing anyone.


Yes, and it is still in fact fraud to charge a roommate rent and have your RE expenses paid by the tax payers. I looked it up to make sure after you didn't believe me. It's not to impress anyone, I'm just annoyed when people/organizations think that ignorance is harmless.


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## OptsyEagle (Nov 29, 2009)

Addy said:


> Thanks OptsyEagle, do you or Spider (or anyone) know if this is something the banks still offer? I am going to go to RBC tomorrow and ask but was hoping to get some insight today if possible.


I don't know but I would guess that it is still offered since the banks like to get their fees and they really hate people who write bad cheques. Don't know how common the practice is so you may need to explain it well to the person you are talking to.


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## Spidey (May 11, 2009)

Addy said:


> Thanks OptsyEagle, do you or Spider (or anyone) know if this is something the banks still offer? I am going to go to RBC tomorrow and ask but was hoping to get some insight today if possible.


I think what my wife often did was just show up at the bank (doesn't need to be the branch) that the cheque had been issued from and asked if the cheque could be covered. If not, she would show up a week later and sometimes again after that if necessary. It seemed that sooner or later the money was available to cover the cheque. When the money was available in the account she would ask that they certify the cheque, locking the funds to cover it. It's worth a try.


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## Mall Guy (Sep 14, 2011)

Spidey said:


> I think what my wife often did was just show up at the bank (doesn't need to be the branch) that the cheque had been issued from and asked if the cheque could be covered. If not, she would show up a week later and sometimes again after that if necessary. It seemed that sooner or later the money was available to cover the cheque. When the money was available in the account she would ask that they certify the cheque, locking the funds to cover it. It's worth a try.


Might have to be the branch, but yes you can still do this. We call the branch every day, and ask if it will clear, then race on over. You would be amazed at what a dozen Krispy Kreme's will do to help the process along !


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## Rusty O'Toole (Feb 1, 2012)

I have had this experience more than once when handling checks from tenants:

Go to bank on which check is drawn.

Teller: Sorry I can't cash this check. Insufficient funds.

Me: If I deposited $10 in the account would it clear?

Teller: I can't tell you that (shakes head)

Me: $20? $40?

Teller: (Nods head)

Me: Deposit $40 in bum's account and cash check.


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## Addy (Mar 12, 2010)

Poopers. There is money in his account but RBC won't certify the cheque for me because it's marked "Dishonoured"  I'm contemplating a phone call to his parents threatening to take him to small claims court to see if that will convince him to pay up. 

If his parents don't pull through for me, thoughts on if it's worth it to take him to SCC for $200? Will I be reimbursed for expenses incurred to take him to court?


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## praire_guy (Sep 8, 2011)

mode3sour said:


> Yes, and it is still in fact fraud to charge a roommate rent and have your RE expenses paid by the tax payers. I looked it up to make sure after you didn't believe me. It's not to impress anyone, I'm just annoyed when people/organizations think that ignorance is harmless.


Why is that illegal?


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## Max (Apr 4, 2009)

The Bank Act delegates a lot of authority to the Canadian Payments Association, so check out www.cdnpay.ca Rule A4 to see the legitimate reasons for return of cheque.

Paragraph 6(c):
An item that is being returned for the reason “Duplicate Payment” may be returned up to
and including ninety (90) calendar days after being received by the Drawee;

Paragraph 22(a) Subject to subsection (b), each Item dated more than six months prior to presentment for
payment may be returned unpaid for the reason “Stale Dated”.

From what I can tell, the time limit on return under a stop payment is 1 business day. The time limit on return as a duplicate payment is 90 business days. The CPA language seems to use the word "may" a lot, which is a further delegation of authority to the bank. The customer would need to file a request to return the cheque under the correct reason before the required deadline. "Intended Payee Not Paid" has a deadline of 6 years, and could also solve the problem if applicable (or if definition is loose enough).

From my experience, most banks state that the stop payment is a optional service they provide, but they have no liability whatsoever in the case that they fail to reject an item. I argued this point under professionalism, stating that if they are going to offer a service, there is an implied expectation of a reasonable standard of performance (based on the bank's own customer service policy that they market openly), and they should be liable to meet that reasonable standard. It might have been my argument, or it might have been my company's assets with the bank that persuaded them to see reason. However, the larger the cheque, the less likely the bank will accomodate, and you will have to submit a formal return request according to the reasons in CPA rule A4 and under the defined timelines to stand a chance of recovering your money.

In the money mart case, they probably spent so much time arguing the enforcement of a stop payment in court, that the time limit for return based on duplicate payment expired.


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## Xoron (Jun 22, 2010)

Rusty O'Toole said:


> I have had this experience more than once when handling checks from tenants:
> 
> .
> .
> ...


Rusty O'Toole: That is sweet. Never would have thought of that one. :encouragement:


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## corezz (Jul 10, 2012)

Addy said:


> Our room mate bounced a cheque on us so we kicked him out. He is refusing to pay the $ he owes us. Rather than go to small claims over $200 I was wondering if there is a way to attempt cashing it again?
> 
> We bank at TD and the cheque is from an RBC account so I was hopjng to try and cash it at RBC.


When i was young i attempted to cash a NSF cheque by accident (my mother sent me a cheque but it ended up getting lost in the mail but 1 year later it turned up and i assumed it was another from her and forgot about the old one but yikes!). Anyway, although it appeared to go through at first, after about 2 biz days it showed up as NSF. Depending on your bank you may (and likely will) get charged an NSF fee too.

Althoguh $200 isnt much for small claims dont forget that you can still "threaten" the guy with small claims and file the paper work for next to nothing and when you do he will likely panic and give up the $200 right away. If he takes this all the way you can have all the court fees put on top of the $200 and then have the court permit you to garnish money from his bank account now that you have his bank details...the bank will have no choice but to give you the money then.


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