Dear Claudienne

I have been through an experience with Jamaica National Building Society (JNBS) with regards to a bank draft I received from a US bank.

On February 16, 2009, I took it to the JNBS Mandeville branch to exchange it for cash and was told that I would have to lodge it for 40 days.

When I went back in mid-April to get the cash I was told that the cheque was dishonoured due to insufficient funds in the account.

For eight months I tried to get back the alleged returned cheque from the JNBS Mandeville branch but was unsuccessful.

I then contacted the JNBS head office in Kingston to get back the returned cheque. At the end of one month the JNBS head office informed me that their banker RBTT had located a copy of the returned cheque but the information on it was not easily legible.

Why did the bank take so long to return to the tenderer a cheque that is said to be invalid ?

I would also like to know why almost $30,000 was debited from my account as the charge for a returned cheque?

Please help me to get some answers from JNBS.

LP

Dear LP

JNBS has advised us that the matter emerged as a result of the dishonouring of a cheque drawn in your favour on a foreign bank. This led to the levying of bank charges against your account at JNBS.

The Customer Service & Quality Assurance (CSQA) Department of JNBS said that although your issues date back to February 2009 when you deposited the cheque at JNBS, your concerns did not come officially to its attention until November 2009.

JNBS said that apparently you misunderstood the process for negotiating foreign cheques which it does through its commercial bankers and this made the matter more complicated. The foreign cheque you deposited in your JNBS account was negotiated through the society’s commercial banker RBTT Jamaica Limited.

JNBS said that between February 16, 2009 and October 8, 2010 the transactions unfolded as follows:

On February 16, 2009 you deposited a cheque drawn on a US bank to your Jamaican dollar account at the JNBS Mandeville branch and the cheque was converted at the day’s transaction exchange rate J$85.75 to US $1.

February 17, 2009: The cheque was deposited to the JNBS US dollar account held at RBTT.

Note: It is the policy of the JNBS that cheques drawn on foreign banks are held against members’ savings accounts for 35 working days until the funds are cleared by the issuing bank.

March 28, 2009: While awaiting clearance of the cheque, JNBS said that they received communication from RBTT Jamaica Ltd indicating that the cheque was dishonoured. On that date, your account was debited in an amount equivalent to the US$ denominated cheque deposited by you at the transaction exchange rate of J$88.55 to US$1. This amount included the RBTT returned cheque charge and the JNBS charge.

November 4: You submitted a written request for the return of the original cheque; and JNBS in turn sent the request to RBTT, and was advised that banks in the USA are not required to return the original cheque to the client, whether on a paid item or returned cheque basis.

Note: This is a result of the Cheque 21 legislation instituted in the USA some years ago. JNBS was, therefore, not in a position to provide the original cheque to you, it was explained. However, the Society said that the Branch provided you with a certified copy of the cheque, which was obtained from RBTT. A letter was also sent advising you that JNBS was not a commercial bank and, therefore, cheques were negotiated on its behalf by its commercial bankers.

November 25, 2009: You made a complaint to the JNBS Member Care Centre, and the CSQA Department intervened.

December 4, 2009: CSQA Department forwarded a certified photocopy of the certified returned cheque to the JNBS Mandeville branch to be collected by you.

May 6, 2010: You made a request by letter that the charges be written off. You were advised that the Society was not in a position to write off the charges.

July 1, 2010: You wrote to the Bank of Jamaica who in turn sent JNBS a letter requesting its response. The JNBS responded to the BOJ by letter dated July 22, 2010.

October 8, 2010: Instructions were given for the charges associated with the difference in exchange rate to be reversed on your account. This was communicated to you on October 13, 2010.

This means that the sum debited from your account has been recalculated at the original transaction exchange rate of J$85.75 to US$1 applicable on the date the cheque was deposited in your account. This means that JNBS has reduced the near $30,000 charge you said was debited from your account for the returned cheque.

The JNBS said that their policy has changed.

“The policy is now: The exchange rate on returned FX cheques are calculated on the original transaction rate of exchange,” the JNBS said.

Good luck.

Have a problem with a store, utility, a company? Telephone 936-9436 or write to: Tell Claudienne c/o Sunday Finance, Jamaica Observer, 40-42 1/2 Beechwood Avenue, Kingston 5; or e-mail: edwardsc@jamaicaobserver.com. Please include a contact phone number.