In November 2007, a change will be made to the cheque clearing process so that customers who accept cheques can be sure that after six working days, funds cannot be reclaimed by the bank. A reclaim might have been attempted typically if the cheque had turned out to be fraudulent or there were insufficient funds in the account. The key changes will be recommended for inclusion in the next edition of the Banking Code in March 2008. APACS has a useful note on this.
November 29, 2007 at 8:48 am |
[...] 2-4-6: cheque clearing APACS have announced that from 30 November 2007, changes to the cheque clearing process will come into effect. The changes, known as 2-4-6 are designed to benefit any person who accepts a cheque, banker’s draft or building society cheque. The Cheque & Credit Clearing Company have issued a set of FAQ’s. The changes will apply to all cheques paid in to major banks and building societies in the UK with effect from 30 November 2007. The changes provide certainty that the cheque (etc.) has cleared after the elapse of six days and that the funds cannot be clawed back out of the recipient’s account if the cheque should subsequently bounce. Customers can expect to earn interest on funds in their account no later than two working days after paying in a cheque (or if the account is overdrawn, the balance is reduced no later than two working days after paying in a cheque for the purpose of charging overdraft interest). Banklawblogger mentioned before that this was in the offing, here. [...]
August 22, 2008 at 2:17 pm |
[...] Law Blogger posted on 2-4-6 in November [...]