Training for Bank Staff on the Cheque Redirection Service as part of the Current Account Switch Service

The Current Account Switch Service (CASS) guarantees that switching from one bank or building society is simple, quick and stress-free.  It is a free-to-use service for consumers, small charities, small businesses and small trusts.

To find out more about the service, how to switch, or who is involved, please click here: www.simplerworld.co.uk

CASS is managed and owned by Bacs, the company responsible for Direct Debit and Bacs Direct Credit in the UK.  More information about how the service is performing can be found here:
•    Statistics and data: www.bacs.co.uk/factsandfigures

The Cheque Redirection Service
A key benefit of CASS is the promise that any payments made to the old account will be redirected to the new account for 36 months after the switch takes place. The Cheque Redirection Service, which is owned and operated by the Cheque and Credit Clearing Company, is part of this service, 

Cheques issued on the old account, but presented after the old account has closed due to the payer switching, will be redirected via the cheque recipient’s bank to the new bank to make the pay/no pay decision. This will happen even if the payer accidentally uses their old chequebook after the switch date.

The cheque will still be honoured provided:

  • there are sufficient funds on the new account or a sufficient overdraft facility
  • the cheque has not been stopped and
  • the cheque passes the usual technical checks.

The 2-4-6 cheque clearing timescales will still be met (these are the timescales for the beneficiary of the switched account cheque) but will need to start again when the cheque recipient’s bank redirects the switched account cheque to the new bank. The cheque recipient’s bank will contact their customer to tell them that the timescales are being restarted and that they are trying to get payment for the cheque at the new bank. 

If a cheque is accidentally paid into the old account after the customer has switched to a new bank, the old bank will clear the cheque and forward the funds to the customer’s new bank once they have cleared for withdrawal. This means that the funds from the cheque still comply with 2-4-6 cheque clearing timescales for interest, withdrawal and certainty that the cheque won’t bounce.

After the 36 months period following a switch, cheques issued on the old account, but presented after the old account has closed due to the payer switching, will be returned to the cheque recipient “account closed”. Also, after the 36 months period, it will not be possible to forward the value of cheques accidentally paid into an old bank account after has been closed due to a customer switching their account.

 

Frequently Asked Questions

The Current Account Switch Service will redirect payments to the customer’s new account for 36 months after the switch takes place.

Cheques will still comply with the 2-4-6 cheque clearing timescales. The funds will be forwarded once they are cleared for withdrawal.

The cheque will still be paid provided: there are sufficient funds (or an overdraft facility) on the new account; the cheque has not been stopped; and provided the cheque passes the usual technical checks. The 2-4-6 timescales are the timescales for the recipient of the switched account cheque. The 2-4-6 cheque clearing timescales, will still be met, but will need to start again when the beneficiary’s bank redirects the switched account cheque to the new bank.

The switching customer should not write cheques using their old chequebook after they have switched – this is contrary to the Terms and Conditions that a switching customer signs up to.

The cheque payment will be redirected to the new bank to make the pay/no pay decision. It will still be paid provided: there are sufficient funds (or an overdraft facility) in the new account; the cheque has not been stopped; and provided the cheque passes the usual technical checks. In the highly unlikely event that the cheque is not redirected and does bounce because the account was closed, then the switched customer should raise their concerns with their new bank in line with the terms of the Guarantee. Neither the switched customer nor the recipient of a cheque written on a switched account should be out of pocket in such a scenario.