Unite against the biggest bank scam!

Les_Mills · 19 July 2005 at 5:28PM

Perhaps Martin could help here, to get a giant movement going to stop the biggest ever bank scam, THE FOUR DAY CHEQUE CLEARING PROCESS.

Years ago when cheques were delivered between banks by runners and entered in a ledger by a man with a quill it took 3 days to clear a cheque. Now with billions of pounds of computer equipment it takes 4 days. In fact I have just been told by Lloyds that a cheque paid in last Thursday will not be cleared until Wednesday, as they 'don't count the first day'! so that is 5 days, then.

Take money from an ATM anywhere in the world and the money dissapears from your account at once, so the technology is there. You will notice that a cheque drawn on your account will be debited days before the payee gets the funds cleared, so where is the money? I'll tell you where, it's earning loads of interest for the banks whilst no one else can see it.

I believe that in Sweden there was so much public outrage that the banks got their acts together and now clear on the same day, why can we not have a great uprising here and do the same.

It would be a hell of a fag for us ull but if we all drew ALL of our money out in cash and payed every bill with it then just maybe it would cause enough havoc to make the banks sit up and think about us for a change.

Most businesses regard the Customer as King, most banks have you lower down the list than the washroom cleaner.

boyblue_2 · 19 July 2005 at 7:10PM

I agree but how do we get the great british public who like to pay through the nose to complain I had a us dollar cheque and they wanted 2 weeks to clear it before I could use the fund (rip off)!!!! more power to your elbow

steady__eddie · 19 July 2005 at 8:26PM

I seem to remember a few weeks ago that the banks put a statement out to the effect that clearing times were to be considerably reduced. However....it would take in the region of 2 years for this to be phased in as the problem lay in getting each banks computer to communicate with every other banks computer, or was it chief exec ?
No doubt someone who has a better memory than mine may post a link to prove that I don't have fantasy dreams.

grumbler · 19 July 2005 at 8:40PM

Banks to speed up money transfers

Les_Mills · 19 July 2005 at 9:04PM

Just checked my wife's and my own bank online (Lloyds & Nat West), a standing order debited from my account at former on 15th. July has only been credited to the latter today, 19th. July. Although this is 3 working days it is 5 interest earning days, do they shut their computers down at weekends? Can you still draw cash out at weekends? Is this a rip off thast should be looked at by our gracious government? Is the Pope a Catholic?

Woby_Tide · 20 July 2005 at 9:43AM

Les_Mills wrote:

do they shut their computers down at weekends?

Technically yes

Nile · 20 July 2005 at 10:16AM

Hey Woby_Tide

I miss your Coronation Street corner shop logo...........it was yours wasn't it?

dunstonh · 20 July 2005 at 10:21AM

In fact I have just been told by Lloyds that a cheque paid in last Thursday will not be cleared until Wednesday, as they 'don't count the first day'! so that is 5 days, then.

They do credit interest from day 1 though.

The problem is that the system is old and a number of the (ex) building socities actually get the banks to do their clearing as well (hence the roll number in addition to the account number). For it to change, all the banks will need to update their computers and software. There also has to be a desire to do it. There are plans, as mentioned higher up to speed up electronic payments but to be honest, if I was in the banks shoes, I wouldnt waste too much money on the cheque clearing cycle. They want the number of cheques issued to decrease and what better way to encourage that then to make all the alternatives quicker and more readily accessible to all.

Paper cheques still have to do a bit of movement between the branches, clearing house and then back to the recieving bank and then allow another day and a half to bounce that cheque. Only half the timescale is actually processing. The other half is making sure the cheque hasnt been bounced. Because of that, i'm not sure how you can eliminate more than a day, maybe two at best.

Rafter · 20 July 2005 at 3:46PM

Cheques are still a less secure form of payment though and banks would like to discourage their use in favour of electronic payment such as BACS (which is being speeded up following complaints from businesses and consumers)

Banks will probably continue to have some delay for a cheque, which has to be manually entered and checked for sufficient funds and probably there will be charges for using cheques too to cover this cost and the fraud costs.

I hate cheques: people who send me them or having to write them rather than being able to use faster, more secure methods. And as for people who still use them in shops and then use their debit card as a cheque guarantee card - sheesh - don't get me started!!!!

R.

dchurch24 · 20 July 2005 at 5:34PM

Should we not petition the govt.?

chillipepper_3 · 20 July 2005 at 6:44PM

I seen this on the TV some time ago and yes there was statements to the effect that banks would need a few years to implement new technology to deal with instant clearing. I think we are one of the slowest countries on this in Europe and the OP is right, technology is sitting there waiting to be used for this. These banks, LIES, LIES, LIES and then some more LIES. I should know I work for one.

What makes me a tad mad is the millions of pounds these banks currently make from the interest on holding your money for the period of 4 to 5 days. That is the real reason why it will take years, they simply do not want to do it unless they are made to.

Typical rip off britain again. Gives me the right hump sometimes.

Unite against the biggest bank scam!

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