News / General

CHEQUE CLEARANCE AGAIN, AGAIN

By SLAS Spokesperson

The banks are again reported to have bowed to pressure to clear customer’s cheques within set time limits, under rules agreed with the Office of Fair Trading (OFT).  The OFT has stated that most cheque account holders will benefit from the new rules but is unable to give any estimate of how much account holders would benefit or the extent to which banks would suffer as a result of some being cleared more quickly and more interest being paid.  In addition, the existing Payments Systems Task Force (PSTF) will be replaced by a new Payments Industry Association (PIA) which, however, shall have no regulatory powers.  The new rules are to take effect in a year’s time and provides that all money deposited into any account will start to earn interest or shall reduce overdraft within two working days, according to the OFT.  These rules are to be incorporated into the banking code from March 2008.  We shall see.

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