5 days to clear a cheque! WHY?

[spoonerl]

Hi

I was wondering why it takes a bank or building society 5 days to clear a cheque, and especially when it's their own.

 

For example,

We recently re-moroaged to buy a property. The building society said that the cheque for money would be with us in a week. This was fine. But when we tried to put the cheque into an account we had opened with them, they said it would take 5 days to clear. Is there some really good explaination for this, or are we just being taken for fools in this country?

[barracad]

It takes so long because the banks invest your money in the overnight stock markets.

 

Other European countries can process cheques on the same day they are received.

 

 

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[spoonerl]

Would be nice if this could be proven.

 

Is there anyway we can get this changed do you think?

[barracad]

It has been proven.

 

I doubt anything will be done - the Government's Cruickshank Report looked into this whenever that was - 1999 or 2000 I believe, and yet still no action has been taken.

 

 

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[spoonerl]

Cheers lee.s

 

I'll look into that one

[Guest Battleaxe]

According to Mr Sanctimonous Mullens, the banks don't make any profit on the delay in cheque clearance, he stated that on GMTV last week, it is us the unwashed public who get the money.

 

Unless pressure is brought to bear nothing will change

[barracad]

According to Mr Sanctimonous Mullens, the banks don't make any profit on the delay in cheque clearance

 

The banks also say their charges are fair, reasonable, and lawful!

 

 

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[spoonerl]

I just did a search on google and found alot of information.

Many of the banks say they dont make any money for a cheque to clear over 3 days.

 

What i would like to know if where does our money go then over 5 - 7 days.

 

Still many unanswered questions

[Guest NATTIE]

Have you seen the APACS website that shows a diagram of the cheque clearing cycle?

There is one exception to the rule, with NatWest anyway. If the cheque and your account is drawn on the same branch for example Bishopsgate and is paid in at Bishopsgate which clears overnight. As everything is in house so to speak.

[livelylad]

Have you seen the APACS website that shows a diagram of the cheque clearing cycle?

There is one exception to the rule, with NatWest anyway. If the cheque and your account is drawn on the same branch for example Bishopsgate and is paid in at Bishopsgate which clears overnight. As everything is in house so to speak.

 

The whole thing is a con if you ask me. I won from RBS got my cheque from RBS HEAD OFFICE took it into a RBS bank in Bristol paid it into my RBS account then asked:

 

Me: How long will this cheque take to clear?

RBS 3 to 6 working days.

Me: Why?

RBS:Thats the standard time sir.

Me: But its a cheque from your head office.

RBS All cheques have to clear sir so we can ensure the funds are available.

Me: But its your head office! its being paid into my RBS account.

RBS Yes but the funds still have to clear.

Me: So what you are telling me is that i have to wait to make sure that the RBS has the money.

RBS: Yes.

Me: But you are minted! You can't expect me to believe that you dont have the funds to honour the cheque?

RBS: Sorry sir thats the process.

Me:I know you are loaded because of all the illegal charges you levy against your customers.

RBS: Uh!

Me: Forget it!!

 

 

RBS are pants!

[Glenn UK]

WE have had this debate before and NTSM was kind enough to explain the whys and wherefores for us with some sueful links too.

 

I proposed that there was no need for the cheque clearing cycle as currently existing and that with the current technology the process coul dbe radically shortened to say a day as being a reasonable timeframe.

 

Anyway i saw an article yesterday and a company there used a special cheque scanner which sent the scanned images to the bank, once the bank confirmed the cheque had been received and enterned onto their system the customer destrioyed the cheue.

 

Sounded perfectly sensible to me and the process was dealt with electronically, the cheques never actually went anywhere after they were issued by the banks customer and received as payment by the recipient.

 

Think it was in the US where this was taking place.

 

Anyway I agree with Barracad, its a 'leghal' [problem] and until enough people get behind the movement to change it, it wont change.

 

JMHO

 

GLenn

[Jimbo44]

Have you seen the APACS website that shows a diagram of the cheque clearing cycle?

There is one exception to the rule, with NatWest anyway. If the cheque and your account is drawn on the same branch for example Bishopsgate and is paid in at Bishopsgate which clears overnight. As everything is in house so to speak.

 

Some years ago (more than twenty), I worked for a large garage company that insisted on personal cheques being cleared bfeore the goods (cars) were released. If the cheque was drawn on a local bank and time was a bit short to clear it 'normally', we used to take it to the bank on which it was drawn and pay-in there to the company's account. Whilst still at the counter we used to ask for clearance and, although the banks didn't like it at all, we got an answer there and then.

[puppylove]

I know you can get cheques cleaqred on the same day but the banks charge you for doing it!! wonder why? probably to make up for the money they are lsoing with their midnight share dealings!!!!