Tweet
There are a few changes to the banking cycle with certainty of fate being brought in on
November 30th 2007.
What is the changes? If you pay a cheque in on Monday{Transaction day or (T)}, then the following Tuesday(T+6 working days) you can be certain that it will NOT be returned even if the funds are fraudulent. The exception to this is if you are a party to the fraud.
Examples: I pay £100 in my bank on the Monday (T day 0). I will earn interest on the cheque from Wednesday(T +2) and I can withdraw funds from it on Friday(T+4) and on the Tuesday of the following day I will know for certain that the cheque is mine(T+6).
Please be aware that the new rules do not appear to apply to ALL savings accounts with regards to T+4 days and that the cheques will be T+2 T+6 T+6. It will be implemented across the board to those who subscribe to the banking code.
Can a cheque be returned outside those timescales?
The answer is yes and it appears to date(25/11/2007) that only First Trust, Co Operative and RBS/NatWest have mentioned it on their website
To quote Co-Operative Bank
This will only happen in very special circumstances, for example: -
an event outside of our control such as a strike by a courier delivery service or very serious weather conditions preventing delivery
if you, the beneficiary of the cheque are found to be a knowing party to fraud
if the cheque has been credited to your account in error by your Bank.
Additional things to note is that the clearing cycle will differ between Northern Ireland, Scotland and England when Bank Holiday specific reasons.
Interesting Resource: http://www.chequeandcredit.co.uk/fil...acts_final.pdf
November 30th 2007.
What is the changes? If you pay a cheque in on Monday{Transaction day or (T)}, then the following Tuesday(T+6 working days) you can be certain that it will NOT be returned even if the funds are fraudulent. The exception to this is if you are a party to the fraud.
Examples: I pay £100 in my bank on the Monday (T day 0). I will earn interest on the cheque from Wednesday(T +2) and I can withdraw funds from it on Friday(T+4) and on the Tuesday of the following day I will know for certain that the cheque is mine(T+6).
Please be aware that the new rules do not appear to apply to ALL savings accounts with regards to T+4 days and that the cheques will be T+2 T+6 T+6. It will be implemented across the board to those who subscribe to the banking code.
Can a cheque be returned outside those timescales?
The answer is yes and it appears to date(25/11/2007) that only First Trust, Co Operative and RBS/NatWest have mentioned it on their website
To quote Co-Operative Bank
This will only happen in very special circumstances, for example: -
an event outside of our control such as a strike by a courier delivery service or very serious weather conditions preventing delivery
if you, the beneficiary of the cheque are found to be a knowing party to fraud
if the cheque has been credited to your account in error by your Bank.
Additional things to note is that the clearing cycle will differ between Northern Ireland, Scotland and England when Bank Holiday specific reasons.
Interesting Resource: http://www.chequeandcredit.co.uk/fil...acts_final.pdf
