New cheque clearing rules

[VectraMan]

What happens if they clear the money and later find that it will not be honoured?

Supposedly with the new rules, after six days it's really cleared and they won't take back the money no matter what. At least that's what they've been say on the news today.

I'm guessing an exception will be made for foreign cheques, and if you knew the cheque was fraudulent.

What is good is they're also saying online bank transfers will now take a couple of hours at most.

This isn't coming in until November 07. According to the guy on R2 tonight, this is because all the computer software needs to be rewritten. More jobs in banking then?

[Mailman]

I say we leave it up to the banks to determine what constitutes 2 days!

Mailman

[ImNotFromIndia]

... Monday - Friday = 2 days.

[expat]

could it be that the cheque is paid in on a day (1) and that is clears on any other day (2)

Well, one bank I was with said that transfers should take 2 days. when I got the detail out of them, it was this:
On Monday you start the transfer. Your branch send the request to Head Office that night, so the clock hasn't started yet.
On Tuesday H.O. look at it and start the process.
On Wednesday 1 day has passed...,
On Thursday 2 days, The incoming transfer is processed that night, so -
On Friday it shows in the receiving account.

Monday - Friday = 2 days.

[MrsGoof]

could it be that the cheque is paid in on a day (1) and that is clears on any other day (2)

[zathras]

They take it back out of your account as they currently do. One of the great Nigerian scams was to send you a fraudulent cheque and ask you to pay them 90% of the money once it cleared and you keep the other 10%.

The cheque clears, you send of 90% to Nigerian scammer and about 6 weeks down the line the bank realises that it was a fraudulent cheque and takes the money back out of your account leaving you severly in debt and a bank who isn't going to look favourably on you saying but i sent 90% to some random guy I don't know....

I was aware of that scam which is why I asked what should happen. Still wondering what the exact definition of 2 days - the devil as the saying goes is in the detail.

[Ardesco]

How do you define two days

1. Is it 2 solid days ie Day 1 you pay the cheque 2 & 3 are the mandatory 2 days. Money available on Day 4

2. Or is it Day 1,2 to clear. Money in account on day 3


What happens if they clear the money and later find that it will not be honoured?

They take it back out of your account as they currently do. One of the great Nigerian scams was to send you a fraudulent cheque and ask you to pay them 90% of the money once it cleared and you keep the other 10%.

The cheque clears, you send of 90% to Nigerian scammer and about 6 weeks down the line the bank realises that it was a fraudulent cheque and takes the money back out of your account leaving you severly in debt and a bank who isn't going to look favourably on you saying but i sent 90% to some random guy I don't know....

[zathras]

So now the banks basically have 2 days to clear funds (and a new monitoring group has been created).

Anyone want to bet how long it takes this 2 day period to move from maximum time to minimum time before a cheque is cleared?

Mailman

How do you define two days

1. Is it 2 solid days ie Day 1 you pay the cheque 2 & 3 are the mandatory 2 days. Money available on Day 4

2. Or is it Day 1,2 to clear. Money in account on day 3


What happens if they clear the money and later find that it will not be honoured?

[Mailman]

So now the banks basically have 2 days to clear funds (and a new monitoring group has been created).

Anyone want to bet how long it takes this 2 day period to move from maximum time to minimum time before a cheque is cleared?

Mailman