Cheque Guarentee Cards

[sprayer]

A good friend of mine took a cheque with the guarantee card number on the reverse side thinking that all would be OK but the bank has since sent him a letter saying "Refer to drawer", it does not say why it has been refused but I thought that the point of a cheque guarantee card WAS that it guaranteed the transaction providing the amount did not exceed the limit printed on the card or am I wrong?

[friedgreentomato]

Depends if the account is closed!

[Barmaid]

Unfortunately, the Cheque Guarantee Scheme ended in June 2011.

[Buenchico]

The Cheque Guarantee Scheme ended on 30 June 2011. Since then there have been no (valid) cheque guarantee cards.

[Baldric]

This from 2011

http://www.bbc.co.uk/news/business-13916937

[Nibble]

Since the actual cheque guarantee scheme was closed in June 2011, then the bank should only clear the cheque IF there are sufficient funds in the drawers account to cover the payment on the cheque, IMO

http://en.wikipedia.org/wiki/Cheque_guarantee_card

Specifically, The Payments Council therefore announced a decision in September 2009 to withdraw the cheque guarantee scheme on 30 June 2011, and the scheme has now been closed.

[ummmm]

Even before it officially ended banks still returned cheques. At work we often got paid by personal cheque with the guarantee number and they bounced. He'll get charged for the bounced cheque and if its clear that it was known that there were insufficient funds he could get charged for misuse of his account.

[sprayer]

Thanks for your answers, I presume the cheque must have been taken with the drawer using an old out of date card, so my friend obviously did not look too hard at what he was being given.