Who 'owns' my money when its mid transfer?

tradetime

dunstonh wrote: »

It goes from branch to that banks clearing house to the bank of england onto receiving banks clearing house and then the receiving branch. If its a building society or ex building society, then an extra layer may be involved with some of them.

The "electronic" clearing cycle was bolted on to the near ancient paper clearing cycle and many of the delays are caused due to law as well as systems that date back 50 years or so. As mentioned this is due to change but requires all banks to have their systems in place and ready to go at the same time.

Thanks dunstonh, that is the first decent explanation of just what all the delay is. Can't say I'm happy, or agree that that is the way it should be, but then I'd have to understand more about it to make that statement, but at least now I understand the theory behind it, and that is the way it is for now.

Meltdown_2

This link regarding the Cheque Clearing Cycle might be of interest.
http://www.chequeandcredit.co.uk/information/-/page/the_cheque_clearing_cycle/

tsugi

In Norway, the banks are fined if an electronic transfer takes longer than a matter of [I'm not sure how many] hours.

It is a ludicrous situation, and the excuse they use of 'clearing' funds is archaic. If it's a DD - I can see how it could get called out then called back, but a transfer? If I try to send someone money and I don't have the funds - I can't do it. I had two payments from clients on Feb 1st, they cleared after midnight on Feb 5th. I incurred £395 in bounce charges from the bank, and god knows how much from the 'bouncees'.

I am thoroughly sick of it now. I had an overdraft for several years to allow for late payments, etc, but in August the bank decided they would cancel it. After some wrangling, they said they would 'compromise' by taking it down to zero between Aug 07 and next August! Since then I'm getting charged up the wazoo every time a payment is late or - as happened - uncleared.

In the bank manager days (remember those?) my manager would ask what was due, and cover payments until the money was in. I'm despearte to find a better bank, but my credit rating is so screwed with this stuff that I don't think it will be possible.

Harrumph!

dunstonh

It is a ludicrous situation, and the excuse they use of 'clearing' funds is archaic.

It is archaic but the laws have been changed and same day transfers should be here in May if there are no problems.

In Norway, the banks are fined if an electronic transfer takes longer than a matter of [I'm not sure how many] hours.

With respect to Norway, the UK banking system is far more important and handles far more transactions. It is vital any changes made work first time. If that means holding up a new system and sticking with an old but very reliable system until they are ready then so be it.

I am thoroughly sick of it now.

It appears you have had financial problems and are looking to vent at banks for any reason. I fail to see how anyone can become thoroughly sick of an external electronic transfer taking 3 days instead of 1.