Wednesday, November 23

Bank rip off to end - next year



British Banks are, at long last, being forced to end a cheque clearing scam which nets them £ 30million a year. They rake in the cash in interest on cheques and automated payments which take up to seven days to reach customers' accounts.
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But now they are set to cave in to pressure from the Office of Fair Trading, who gave them until the end of the year to come up with a scheme to end the rip-off. The Association for Payment Clearing Services (APACS) will meet next month with OFT bosses to commit to a deal which will see cheques cleared in just two hours.
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In some cases, transactions could go through in only 15 minutes.
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Federation of Small Businesses spokesman Niall Stuart said in a press release on Monday:
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"Cash flow is the biggest problem for small businesses and waiting for cheques to clear only makes this worse.
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"Firm owners are waiting up to seven days for a cheque to clear while bills mount up.
"Suppliers and wages are some of the outgoings expected to be paid on deadline.
"But if a cheque for a big job is in the bank waiting clearance, small firms need to rely on money from elsewhere to meet the demands" Often they have to get their overdrafts extended, which leads to more debt.
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"When a cheque is deposited, the money leaves the payer's account usually on the same day.
"But the person due the cash is left waiting up to seven days to get their hands on it.
"The banks, meanwhile, are claiming interest on the cheque value. Now, at last, this has been addressed."
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In May, banking chiefs accepted after considerable pressure had been applied over many years, that electronic transactions such as bill payments and internet banking were taking too long to process.
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After considering various solutions, they opted for a two-hour processing pledge.
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But customers should not get too excited yet, we will have to wait until the end of 2007 before the system is introduced - allowing the banks to net more than £ 60million !

1 comment:

Abdul said...

This is a world wide problem not just a British rip off. The biggest problem with Banks is their charges which despite banking charters etc are very unclear and unethical.

AbdulKakah