Re: Cheque Express Clearance...

In message <dov3ok$g4r$1@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx>, Eric Jones <ejones999@xxxxxxxxxxxxxx> writes

But what about a 'Bankers Payment'? For local payments (and I think the OP
said both collecting and drawee banks were in the same town) couldnt a BP
be handed to the collecting bank?  Do Bankers Payments not exist any more?
--
John Boyle

Not in the way that you mean. A cheque drawn on say a Barclays account could
be paid in over the road to say a Nat West account but Nat West would no
longer walk the cheque to Barclays. They would post it to the Central Nat
West Express clearance section (wherever they may be based) and the cheque
would be paid (or otherwise) through a paper Bank Giro Slip through the
clearing systems.They would phone for fate in the normal way but funds would
only be available at the end of the clearing cycle.
Only cheque in excess of half a million are dealt with by Chaps.

But surely that is just a matter of a particular banks practice rather than a change in the law. AIUI the Bills of Exchange and Cheques Acts, and their amendments, whilst removing the need for a cheque to be physically presented to the drawee for payment have not removed one of the main attributes in the definition of a cheque as being 'payable on demand', (s73 Bills of Exchange Act 1882). Has this been repealed?

As it happens a short while ago I was chatting to my mate who is the manager of one of the local branches of a bank in the same group of one of the banks you mention above. He told me about a business client who had a cheque payable to him for which advice of fate (and cleared funds) was need quickly. My mate suggested a special presentation which was to be walked to the drawee involved (mere yards away) with the request for a Bankers Payment. The staff at the drawee had no understanding of the request at all, neither had their 'manager' (ahem) or the 'manager' (ahem) at the central 'remittance' room (my words) many miles away. Luckily my mate phoned his mate from the CIB who was the area manager for the drawee concerned and it was sorted, but I am not sure at this stage that a BP was issued, even though fate was eventually determined on presentation.

So, despite the operational requirement of Natwest (oops, I've let it slip), surely the rule of law overrides it when necessary?

As a separate question : Do 'Bankers' Payments' still exist? They were quite a different animal to drafts etc., and were as good as cash, but only between banks.
--
John Boyle
.

Relevant Pages

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