Money Grouse: The long, long wait to get a cheque in the clear

Friday 19 August 1994 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

DR STEPHEN Wyatt, a freelance television scriptwriter, who has written episodes of House of Eliott and Casualty, is appalled by the time taken by Nationwide Building Society to clear his cheques.

On cheques of over pounds 1,500, the society takes seven working days after the cheque is paid in, a period that can span two weekends.

In effect, the real clearing time can be as long as 11 days.

Dr Wyatt checked with a few other banks and building societies to find out the clearing time for their cheques.

He discovered that Halifax and Abbey National did not operate the same sort of rule - all cheques are cleared after three working days, whatever the amount.

'The cheques are usually paid in by my agent. A large number of them come in above that pounds 1,500 level,' Dr Wyatt said.

Nationwide said the length of cheque clearance time was set according to the degree of risk the society was willing to take on. A society spokesperson said: 'A cheque may not actually be cleared after seven days.'

Many cheques are processed through the postal system, which can add delays and increase the risk that someone can withdraw funds on the back of a cheque that subsequently bounces.

He said that the longer the clearance time the less the risk to the bank. Nationwide offers a service that will clear the cheques on the next working day.

It costs pounds 12 per cheque. Nationwide has written to Dr Wyatt to offer him this service, but this has only served to enrage him further. 'They can whizz any cheque though the clearing system if they want to. It just shows how tenuous their argument is.'

Write to Money Grouse, The Independent, 40 City Road, London EC1Y 2DB. Please do not send SAEs or original documents as we cannot guarantee to deal with every letter personally.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in