New online tool launched to help customers check clearing times for their cheques
2-4-6 cheque clearing changes – brought in to benefit customers paying in cheques - reaches one year anniversary
The Cheque and Credit Clearing Company (C&CCC), has today (25 November 2008) marked the anniversary of the introduction of industry-wide changes to cheque clearing timescales. Known as 2-4-6, the changes set industry-wide maximum timescales for the different stages of cheque clearing. For customers the changes mean that at the end of six working days after paying in a cheque, they can be certain that it won’t bounce and that the money is safely cleared.
To coincide with its anniversary, the Cheque & Credit Clearing Company has launched a new online tool to help customers check clearing timescales – the ‘cheque checker’. Customers can enter the date they pay in their cheque to work out the crucial stages within the cheque clearing process. These include: when they can expect to earn interest; withdraw funds; and finally when they can be sure that the money is theirs to keep. The checker is free to use and available at – www.chequechecker.co.uk.
Research* has shown that 48 per cent of adults still receive cheque payments, but very few understand the clearing process. Only eight per cent know when they can expect to earn interest on money paid in by cheque (no later than two days after paying it in) and just 23 per cent of cheque recipients can identify when they are able to withdraw money (no later than four days for a current account or six days for a savings account). Over three quarters of cheque recipients (77 per cent) thought that the time when they could be sure a cheque could not be returned unpaid was sooner than it actually is.
Angela Thomas, Managing Director of the Cheque & Credit Clearing Company, said:
“Although cheque use is in long term decline, and customers are only paying in cheques on average 5 times a year, there are still many people who still use them. However, our research shows that many aren’t aware of the key timescales involved: particularly the crucial point that cheque funds aren’t guaranteed until the end of six working days after you have paid it in.
“2-4-6 has added much needed clarity and certainty to the process, and our new online cheque checker aims to help out those customers who want to know what to expect when paying in a cheque.”
Further advice on cheque clearing, including advice leaflets and animated graphics explaining the process for current and savings account users are available online at www.chequeandcredit.co.uk.
ENDS
For further information contact:
T: 020 7711 6340 E: press@apacs.org.uk
* Consumer Cheque Market Research conducted by TNS on its Consumer Omnibus between 14 and 18 May 2008 based on a sample of 1,998 adults.
The Cheque and Credit Clearing Company (C&CCC) is a membership-based industry body which manages the cheque clearing system in Great Britain, including the processing of bankers' drafts, building society cheques, postal orders, warrants and government payable orders. Its wide remit also covers the management of the systems for clearing paper bank giro credits and euro-denominated cheques.
APACS is the trade body that gives banks, building societies and card issuers a forum where they can work together on non-competitive issues. We help manage the way that businesses and individuals in the UK move their money around - this covers cash, credit and debit cards, cheques and automated payments such as Direct Debits, salary payments and the new Faster Payments Service launched on 27th May for online/phone banking transactions and standing orders. We lead the fight against banking fraud and twice a year we publish figures on payment industry fraud losses.