- 03
- Dec
- 07
Last week saw the banking industry implement some overdue changes to the way cheques are dealt with by banks.
In the past, if a cheque turned out to be a forgery, banks could recoup the money from a customer’s account. This could happen weeks or months after it had initially been paid in.
The changes have been put in place to better protect the customers against the growing problem of forged cheques.
The Office of Fair Trading (OFT) has been pressuring the banking industry for some time calling on them to clarify the banking system surrounding cheques and clearing processes.
A spokeswoman for banking payments body Apacs said: “The big change concerns certainty of funds. It’s only in the last few years that it has become an issue due to organised gangs getting into cheque fraud.”
Additionally, banks now have a maximum time frame within which they have to credit cheque payments to people’s bank accounts.
The changes mean that:
• Any cheques paid in by customers will now be considered cleared no later than six days after being paid in
• Interest will be credited no more than two working days after the cheque is paid in
• The money paid in by cheque must be available for spending after no more than four working days
These are now guaranteed limits according to the Cheque and Credit Clearing Company; however, it is likely that individual groups will compete to offer faster services.
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