Barclays - Cheque clearance time to increase!

the_architect_4

Just had a leaflet from my wonderful bank barclays. They have told me that on Cash Card current accounts the cheque clearance time will now not be 5 days before I can draw on it but 6 days! Wonderful news as the bank will make more money, they can sack staff and decrease service and charge us all more - Genius! I think Martin needs to warn people about this one, i'm moving banks, oh they all will be at it so what's the point! Soon we will have to pay to take our money out DOH! we do already (Cash Points), damn clever!

M_Thomson

the_architect wrote:

Soon we will have to pay to take our money out DOH! we do already (Cash Points), damn clever!

I know that there are a lot of fee charging machines, but the Link Network ATM's do not charge anything. You can find Link Machines at most banks. So you can't really say you are charged all the time!!

Rafter

As less and less people use cheques, they are being used more and more by people when they are overdrawn, over their overdraft limit and know that their debit card will be refused as a result.

Why shouldn't the bank cover themselves a bit?

I know it is annoying if you have a large cheque to pay in but you could pay for special clearance if you were that desperate.

Alternative ask the person paying you to use BACS or internet banking. If they bank with the same bank as you the transfer might only take 24 hours.

R.

the_architect_4

Rafter do you work for a bank? Are you completely mad, Barclays make money off this increase in time, in Europe it's different believe you me, how anyone can take the side of the greedy banks with billions in profit taken from you and me I do not know! Lack of response to this email just shows that your all brainwashed by the banks!

Cardinal-Red

Rafter wrote:

As less and less people use cheques, they are being used more and more by people when they are overdrawn, over their overdraft limit and know that their debit card will be refused as a result.

Why shouldn't the bank cover themselves a bit?

I know it is annoying if you have a large cheque to pay in but you could pay for special clearance if you were that desperate.

Alternative ask the person paying you to use BACS or internet banking. If they bank with the same bank as you the transfer might only take 24 hours.

R.

You'd have thought that the outrageous APRs applied to entire overdrafts and the ridiculously high (and potentially illegal) unauthorised overdraft charges applied when people use guaranteed cheques to knowingly overshoot their overdraft limits would be enough to 'cover themselves a bit'.

The noises from OFT, government and EU are all aimed at banks reducing clearing times of payments at the moment. As the Architect alludes to, in Europe some countries have 24 hour systems between different banks, never mind two accounts at the same institution.

MarkyMarkD

The main reason the banks are doing this on their basic bank accounts and similar is that these accounts are used by people with a tendency to bank dodgy cheques. It's unfortunate, but true - the level of fraud on such accounts is higher than on "normal" accounts. And given that these accounts aren't supposed to allow overdrafts, they aren't credit checked in the same way as "normal" accounts (if at all) and the banks have no assurance of getting the money back from the customer if a cheque turns out dodgy.

As mentioned in other threads, cheques can be bounced at virtually any time despite being cleared for value in a couple of days. Any bank allowing funds to be withdrawn against a cheque on the day it clears for value is taking a risk that the cheque will be bounced "late". And they just aren't prepared to take this risk on their "basic" accounts.

Given the value of cheques banked by "basic" banking customers, I don't think the banks are exactly profiteering - as these accounts don't allow overdrafts, how do you think the banks even cover their costs?