Cheque deposits offer greater benefits for consumers
January 2, 2008
In recent changes made to regulations relating to cheque deposits into bank accounts, consumers can now enjoy greater benefits and greater protection. Consumers that make cheque deposits into their banks will be able to enjoy greater efficiency and speed, as well as greater peace of mind. New regulations were put together by APACS and the Cheque and Credit Clearing Company, and came into force last month.
Cheque clearance times have always caused confusion, and according to the results of a recent survey fewer than 25% of consumers were aware of the correct clearance times for a cheque deposit. Around 50% were worried about accepting a cheque as a form of payment in case the cheque bounced and they lost the money. However, this should no longer pose such a problem under the new regulations.
Banks and building societies were able to reclaim money from the account of the person into whose account the cheque was deposited if the cheque was found to be fraudulent or if it bounced. This could be done even if the issue didn’t arise for weeks or months. However, under new regulations the accountholder will be legally entitled to the money after six days, no matter what happens at any future date with the cheque.
In addition to this banks will have to start paying interest on cheque deposits after two days, and after four days the accountholder will be able to draw money against the cheque.
One APACS spokesperson stated: ‘Although cheque use has fallen over the last few years, cheques remain important for certain customers in certain situations. Whether it’s a small business or someone selling a car, there are many occasions where cheques still get handed over. These changes will really benefit anyone paying in a cheque, offering them certainty and clarity on when the money has cleared and giving real peace of mind.’
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