Bank charges case - are clearing times being queried?

Pokerface_Dom

I've read a number of the articles and discussions on this site, but I don't think I've ever heard mention of whether the times banks take to clear funds is under question in the test case.

I am currently challenging the Alliance & Leicester on a number of charges they have levied against my account, and as is the norm, my claim is currently on hold pending the outcome of the test case.

The majority of the charges levied on my account relate to funds not clearing in time from my business account (usually takes 3-4 days). This is a big grief of mine as I feel that as the funds are being transferred electronically, it is impossible for me to send funds from one account to the other without their being sufficient funds in the first place.

If I went to a shop or restaurant to purchase goods or a meal, the transaction is carried out there and then. If there were insufficient funds in my account, the transaction wouldn't go through.

So why does this not apply to bank transfers? If I'm right and clearing times aren't covered in the test case, then I think it is another avenue worth exploring in reclaiming monies from the banks.

Pokerface Dom - 1st time poster!

natweststaffmember

Pokerface_Dom wrote: »

I've read a number of the articles and discussions on this site, but I don't think I've ever heard mention of whether the times banks take to clear funds is under question in the test case.

I am currently challenging the Alliance & Leicester on a number of charges they have levied against my account, and as is the norm, my claim is currently on hold pending the outcome of the test case.

The majority of the charges levied on my account relate to funds not clearing in time from my business account (usually takes 3-4 days). This is a big grief of mine as I feel that as the funds are being transferred electronically, it is impossible for me to send funds from one account to the other without their being sufficient funds in the first place.

If I went to a shop or restaurant to purchase goods or a meal, the transaction is carried out there and then. If there were insufficient funds in my account, the transaction wouldn't go through.

So why does this not apply to bank transfers? If I'm right and clearing times aren't covered in the test case, then I think it is another avenue worth exploring in reclaiming monies from the banks.

Pokerface Dom - 1st time poster!

The OFT test case is not looking at clearing times. The Clearing times were qualified in about November 2007, I believe as being the 2-4-6 or 2-6-6 which means, that after 2 working days the cheque gains interest, on 4 working days you can draw on the cheque and on 6 working days the money is cleared for fate.
The clearing cycle is not an avenue for reclaiming because the act of returning an item is incorporated within the OFT test case issues.

Pokerface_Dom

I can understand the clearing times you've stated being applicable to cheques, but I am talking about electronic transfers.

As I said on the original post, it's impossible to do a transfer without sufficient funds being available to cover it, so why is it not an immediate credit into my receiving account?

natweststaffmember

Pokerface_Dom wrote: »

I can understand the clearing times you've stated being applicable to cheques, but I am talking about electronic transfers.

As I said on the original post, it's impossible to do a transfer without sufficient funds being available to cover it, so why is it not an immediate credit into my receiving account?

It will depend because until recently many transfers worked through BACS and Faster Payments only arrived, so to speak. Any online transfers would have had a cut off point to be sent the same day they were keyed so it may have been 6:30/7pm for same day counting. The difficulty you have with regards to a legal case is that charges themselves which are the consequence is UTCCR 1999 which is part of the OFT test case.