Re: Cheque Express Clearance...


"john boyle" <john@xxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:IxDf$AYr5xsDFwkm@xxxxxxxxxxxxxxxxxxxxxxxxx
> In message <dov3ok$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 Has this been repealed?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
I do not question your obvious knowledge of the British banking system. I
too remember many years ago having to go to various banks with cheques to
ask for bankers payments and yes I'm sure that they were processed as
cleared funds to customers' accounts. However today such a beast does not
exist.
Whether the Bills of Exchange Act has been amended or parts repealed I do
not know.


.

Relevant Pages

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