Bouncing a cheque | GIC discussions | Discussion forum

Bud said
Has anyone done this to get out of a Gic. Stop payment fee around $12-15. Any other repercussions. Was told no affect on credit score unless done often. Gic issuing bank what action will they take? Request another cheque if it doesn't come they won't issue a Gic.  

Once when interest rates much higher I bounced cheques valued about $12,000. NSF cost $15 then. I wrote another cheque. It bounced. Not sure how many I did. They finally sold my security. I think it took about 2-3 months. I made $100 net. I had fun. Not worth doing these days with NSF fees in the $50 range.

The internet says it's illegal to write a bad cheque, i.e. "You may be charged with an offence under the Criminal Code of Canada if you write a cheque when you know that there is not enough money in the account to cover the cheque."

Norman1 said
The NSF cheque offence is Criminal Code 362(1).

Interestingly, the accused is actually presumed guilty under 362(4):

Presumption from cheque issued without funds

(4) Where, in proceedings under paragraph (1)(a), it is shown that anything was obtained by the accused by means of a cheque that, when presented for payment within a reasonable time, was dishonoured on the ground that no funds or insufficient funds were on deposit to the credit of the accused in the bank or other institution on which the cheque was drawn, it shall be presumed to have been obtained by a false pretence, unless the court is satisfied by evidence that when the accused issued the cheque he believed on reasonable grounds that it would be honoured if presented for payment within a reasonable time after it was issued.

Not sure that would apply with a cheque that has been stopped. When the stopped cheque is returned, it will be returned with the return reason 903 (Payment Stopped/Recalled) and not 901 (NSF). So, the financial institution will know that the customer put a stop payment on the cheque for the GIC.  

The actual problem was the bank processed a deposit to your account late (i.e. days after you presented a deposit at teller). If they processed the deposit 1-2 days after you made the deposit then it could come up NSF. Today it is best to wait a few days before writing/sending a cheque.

Norman1 said

cruzinalong said

The actual problem was the bank processed a deposit to your account late (i.e. days after you presented a deposit at teller). If they processed the deposit 1-2 days after you made the deposit then it could come up NSF. Today it is best to wait a few days before writing/sending a cheque.

Not clear to me how that could be the case.

Teller and ATM transactions are live. When done before the cutoff time, teller and ATM transactions are posted the same business day. One can even see them in online banking by the time one returns home and logs onto the online banking web site.  

I am talking years ago. Say 1997. On payday I would drive to the bank after work to pay my PLOC. Say 5:00PM. Not sure cutoff time in those days. It was probably before I arrived. Say 4:00PM. Not sure when ATM were a reality for MY use. Certainly not in the 70's-90's. Sometime in 00's. I can remember going to a teller to make a $20 withdrawal. Good thing changes occurred over the years.

Bill said
Deposits were never dated later then next business day.

In Canada ATMs were common by mid-1970s.  

ATMs/ABMs were around in the mid 1970's. Yes. I never used them. I remember going to Ottawa with a fellow worker in 1996. I tried to withdraw some cash. Declined. No money. My fellow worker said he never saw that before. That is the way I did things. Other people did things differently. Having fun.