The bank tells me that if by mistake they pay out on cheques that haven’t been cashed after six months I will still be liable. Can this be correct? Am I legally bound to replace a cheque after it becomes invalid?
A cheque doesn’t become invalid after six months: it’s just normal banking practice to refuse to pay a cheque presented for payment more than six months after issue, on the basis that it is stale, i.e. it has been in circulation for a considerable period without presentation, however, the drawer of such a cheque (you) remains liable on it for a period of six years from the date of issue, and the person to whom you owe money can request a replacement in these circumstances.