Time for banks to clear money

GSD4ME

I have read the posts from those trying (successfully I hope) to reclaim their illegal rip-off bank charges and also the rather holier-than-thou comments from those who think that we should all pay up quietly as it is our own fault when we are overdrawn. But what these people fail to see is that frequently it is the bank’s fault as it takes SO long for them to clear money.

For example, last Thursday I needed to pay a bill from my company account (to avoid a late payment charge). I had paid in several cheques on Monday morning and a regular customer had made a regular internet transfer the previous Wednesday. I could not make the payment as neither had cleared. When I phoned the bank I found out the internet payment had not come through due to a mistake on the part of the other bank, I now have to wait a further 4 days for it to clear, and the cheques take 5 days to clear. FIVE DAYS!! I pointed out to the bank worker that we are now living in the 21st century and not still using a man running with a cleft stick!

The British Bankers’ Association web-site explains in detail how it takes 3 days for a cheque to clear, but say that it is up to the bank to decide when the funds are available. Clearly banks that take over three days treat their customers with contempt.

I think it is outrageous and scandalous that banks take this long to clear money and then charge you for being overdrawn. I transfer money from the company account to one of our personal accounts, always by the internet. This takes a minimum of 4 days, when we all know that internet transfers can be instantaneous. Meanwhile my husband’s bank charges £25 per day if he is overdrawn even though they take 4 days to clear the money he has paid in. This is nothing short of a scam.

Those who worry that their bank charges will go up if others recoup theirs are missing the point. Banks make millions of pounds in profits and even if they abolished all charges tomorrow they would still make massive profits from interest etc.

kenshaz

The problem is because of the nature of this site it attracts a lot of posts from the banking sector and those who are worried and concerned about themselves and not what is just,we are a site about money after all,do not be concerned the voices are the minority and they are entitled to an opinion,does not mean they are right.We all know the score Panorama high-lighted the tactics of banks .A revolver was a term used by banks to describe a person in debt,is that compassionate.
Banks could clear same day ,but it suits them not to,but eventually they will have to give in

morlandbanks

It IS annoying, isn't it? I tranferred some money into my savings account last week, then for reasons I won't bother to explain, I had to buy a new car (by new, I mean new to me, but old to the previous owner!?). I am now a bit overdrawn with my current account because the saving account won't let me tranfer it back until it's 'cleared'. And get this...they take 7 banking days!!!

They might call themselves bankers...but if I were a poet...

regularsaver1

cheques can bounce even after they have cleared - it often depends on the type of account you have as to how long it takes to clear a cheque in your account

regularsaver1

maybe they do it to help combat fraud?

i really don't know but there must be a reasodn (other than money)?????

jonesMUFCforever

GSD4ME
Can I ask you one question?
If you know that cheques are going to take 4-5 days to clear why accept them? Why not insist that everybody who owes you money has to pay you via chaps.I'll leave it to you to decide who pays the fees.

M_Thomson

GSD4ME wrote:

a regular customer had made a regular internet transfer the previous Wednesday. I could not make the payment as neither had cleared. When I phoned the bank I found out the internet payment had not come through due to a mistake on the part of the other bank

If this was an internet transfer, it would have been the mistake of the customer inputting the wrong details rather than the bank.

Tootsie_Roll

Al_Mac wrote:

More than likely, but they'll still blame the bank:rolleyes:

Exactly - the same usual boring old rubbish spouted over and over again !

As another poster pointed out it probably isn't going to change so instead of complaining about it why the hell don't they just try and work with it !! After all the timescales are always going to be the same.

balliol

Excuse me electronic transfer is no quicker i electronically transers money from my savings to my current last Thursday and im still waiting for it to appear ok only 3 working days have lapsed but the account that you are drawing from shows an INSTANT transaction whats all that about!

Debt_Free_Chick

balliol wrote:

Excuse me electronic transfer is no quicker i electronically transers money from my savings to my current last Thursday and im still waiting for it to appear ok only 3 working days have lapsed but the account that you are drawing from shows an INSTANT transaction whats all that about!

The money is taken from your account straight away and then it takes 3 days to make its journey to the other account.

You can do an instant electronic transfer - well, it's almost instant. But you need to do it as a CHAPS payment, for which the bank normally charges about £25. It's not "instant", but if your bank makes the CHAPS transfer before midday, it normally arrives in the recipient's account before 4pm. CHAPS is the system used by mortgage lenders to get money to solicitors to complete on a house purchase ... so it can be done. That's the reason why you can't collect the keys before midday and it can sometimes take a few hours ... as the solicitor is waiting for the money to hit their account.

A straightforward transfer by internet banking is not the same as CHAPS. It's a simple instruction to make the normal BACS transfer which is really no different to an electronic cheque. Instead of writing the cheque out, you give the instruction via online banking. The bank then sends that electronic cheque to the recipients account. However, they have to wait 3 days for it to arrive .... you have to release the money from your account immediately (otherwise, there is no money to send down the line).

HTH

Tootsie_Roll

Al_Mac wrote:

You saying I spout boring old rubbish. Thanks

Probably not as much as me