27 November 2007
The way in which Britons use cheques will change from next Monday, payments association Apacs has announced.
Known as 2-4-6, the changes are aimed at improving the efficiency and clarity of the paying process - as well as representing a lessening of clearing times.
Under the new system, a standard of six working days has been set from the time when the customer pays the cheque in to the time it has fully cleared.
A limit of four days has been introduced for the time in which money can be withdrawn from accounts after paying in a cheque.
Finally, there is to be a limit of two days after paying in before which the cheque affects a customer's bank balance on which overdraft interest is charged.
Angela Thomas, Cheque and Credit Clearing Company Managing Director, said: "Although cheque use has fallen over the last few years, cheques remain important for certain customers in certain situations.
"These changes will really benefit anyone paying in a cheque, offering them certainty and clarity on when the money has cleared and giving real peace of mind."
The changes were proposed through consultation with the UK banking industry, following research which showed that less than 25% of cheque users knew the correct timescales for clearing.
With the simple new 2-4-6 system, this figure should rise.
© 2008 Adfero Ltd
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