cheque clearing news

entwisi · 24-11-2006, 14:37

The Government has announced changes to the cheque clearing process, due to come into effect next November. The key measures are:

Cheques will count against overdrafts and earn interest no later than two working days after deposit
Customers will be able to withdraw funds no later than four working days after deposit
Banks won’t be able to take back money deposited by cheque later than six working days after deposit, unless fraud is involved.

One thing I noticed though is teh number of businesses that no longer accept cheques, most petrol stations don't and I noticed a sign in WHSmith saying they too wouldn't be accepting them shortly. Is this teh end for teh humble chequebook?

WillowTheWhisp · 24-11-2006, 14:52

Maybe it will survive a while with grannies giving cheques to grandchildren on birthdays and the odd eBayer who won't accept PayPal and insists on personal cheque despite there being other alternatives.

Ianto.W. · 24-11-2006, 15:06

Cheques are a dinosaur, that should have died out with the onset of electronic banking, debit cards as most banks issue now instead of the old 'hole in the wall' card, will probably see their demise. The fact that someone makes a living in a clearing house by making the recipient of a cheque wait 4/5 working days 10 at a building society, for their rightfull dues is criminal to say the least.

Bazf · 24-11-2006, 15:50

Banks will always find a way to fleece money out if you, like their counterparts in Insurance. Bank charges are a crook that just keeps getting bigger. Once somethings go away they will be back with newer ways to take money.

grannyclaret · 24-11-2006, 15:52

I mostly use cash or debit card ,but i like to use a cheque now and then...

cashman · 24-11-2006, 17:15

i make cheques out that infrequently that i scratch me head trying to suss out how to fill the damn thing in, so i for one say GOOD RIDDANCE.

West Ender · 24-11-2006, 17:19

My daughter recently opened a new current account. She has a debit card but not a cheque book - mainly so she's not tempted to overdraw. I have been using the same cheque book for over 18 months as I rarely need to write a cheque these days. When I have, it's usually been for something my daughter needed to pay by cheque, particularly for my granddaughter's school, and she's given me the cash. I don't think cheques will disappear for a while yet but I can't remember the last time I paid with one for a purchase.

shillelagh · 24-11-2006, 21:37

I've had the same cheque book for the last 4 years. I dont use them that often.

WillowTheWhisp · 24-11-2006, 22:50

I think perhaps some people don't understand how a cheque clears.

There isn't someone in a one size fits all clearing centre sitting on it for a few days and then letting it go. It travels from 'A' to 'B' to 'C' to 'D'. 'A' being your bank where you paid it in, 'B' being the clearing centre of your bank, 'D' being the bank it was drawn on (the bank of the person who gave you the cheque) and 'C' being the clearing centre of their bank. Then of course for a 'bounced' cheque there is the journey back to the bank where it was paid in.

It takes longer for a building society because they don't have their own clearing centre. They have to do it through a bank.

When I worked at the TSB we were the only bank then operating an OLRT computer system (on-line real time) so if anyone came in with a cheque drawn on another TSB branch the account was debited immediately and their account credited as if they'd paid in cash. It's still like this in the old TSB branches of Lloyds TSB and I presume the old Lloyds branches will now be on the same system. I don't know about any other banks.

I'm not sure how they plan to shorten clearing time and would be very interested to learn how it is to be done. Perhaps someone who currently works in a bank could enlghten us?

cashman · 25-11-2006, 00:24

bonnie and clyde shortened the clearing time i believe.

Ianto.W. · 25-11-2006, 00:53

Quote:

willow the whisp I'm not sure how they plan to shorten clearing time and would be very interested to learn how it is to be done. Perhaps someone who currently works in a bank could enlghten us?

Why can they all not just do it electroically Willow as you said your bank did?
__________________

WillowTheWhisp · 25-11-2006, 01:02

Well one Bank cannot access another bank's accounts for a start.

Ianto.W. · 25-11-2006, 01:12

Quote:

Originally Posted by WillowTheWhisp

Well one Bank cannot access another bank's accounts for a start.

I missed the point Willow, for inter -branch banking only sorry, must be the 'vino'. seroiously someone must benefit from all these delays or it would soon be disposed of, trying to juggle the finances when I was in business was a nightmare on pay day, I finished up opening an account at the Blackburn branch of my bank and drew the wages there after paying cheques in at the Accrington branch and hoped for the best.