Popped into the Co-Op bank this morning to a pay Co-Op visa bill - a massive £1-98 incurred as a parking charge in Canada - the machine at the car park would not take notes.
Proffered the bank teller a £2 coin. We can't take cash as payment I was told. On enquiring why was told that due to government legislation requiring bank to provide immediate credit of accounts paid with cash they could no longer accept cash for bank giro payments. Had to pay such items as transfer from current account or by cheque both of which would take 3 days to clear. I paid by transfer
"Can I pay cash into my current account" I enquired? Of course she said so I made a deposit of £1-98
Sometimes the world seems to have got very complicated
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Complicated? Insane I would say. Our accounts are with First Direct, so we have no branch. Does that mean if I have £10,000 in cash I have to keep it under the mattress?
It sounds like rubbish to me - I shall make enquiries.
She didn't tell you it was to do with the Data Protection Act anyway - that seems to be an excuse for anything and everything.
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I think this is an unforeseen consequence of regulations introduced with good intent.
Previously, if I paid £250 cash into the account of Mr Smith, the bank would not let Mr Smith have use of the money for several days, unless Mr Smith's account was held at the same branch.
Customers complained the money was 'in limbo' - in reality in the bank's own account - for those several days.
So immediate payment regulations were brought in, and it looks to me as if the OP has come across a side effect of those regs.
Last edited by: ifithelps on Sat 31 Jul 10 at 18:44
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"the OP has come across a side effect of those regs."
That was my conclusion iffi.
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there is no such thing as a regulation that says they cant take cash, they just choose not to.
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" there is no such thing as a regulation that says they cant take cash, they
just choose not to "
Basically correct. I if I understood correctly they were saying that because the inbuilt system delay in crediting the third party would be in breach of the government regulations if they took cash, they were no longer prepared to do so.
Effectively the law of unintended consequences.
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The inbuilt system delay, dos not actually exist, but the banks claim it does, so they can use the money to make more money.
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I'm with Zero. From working in a bank branch 20 years ago, ISTR the cheque clearing process took 2 days: day zero, cheque arrives over counter; day one, cheque forwarded to issuing bank central office; day two, cheque arrives at issuing branch. "Switch" card etc transactions could theoretically be carried out instananeously but the two day delay was built in to encourage the use of electronic transactions over paper ones.
Last edited by: Dave_TD {P} on Sat 31 Jul 10 at 22:26
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It always amazes me how they fake the cheque clearing cycle to be longer. Everytime they mention how long I point out that in the 60s when it was done manually it took 3 days including the day you presented it! Why in the days of computerization it suddenly takes longer is just the banks being con merchants.
Cheques are going to disappear but there isn't an adequate method in place that is any better. If you pay by BACS then you really need internet banking and only businesses would want you to know their bank account and sort code.
I can see people will end up doing something bizarre like buying cash gift certificates!
The switch card delay is dumb. It checks your account for the balance right there and then so it should debit it there and then. Having it show up 3 days later is mad unless you want to encourage people to play clearing money roulette...
Banks deliberately order transactions to the disbenefit of the customer. Generally debits go out first rather than credits going in. It should be the other way round! If all credits appeared immediately and all debits went out immediately customers would knew where they stood much better. But banks don't want that as they like charging people for slipping into an overdraft because they took an extra day to clear a cheque.
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The banks actually agreed some years ago to take steps to stop the delayed period before you could use money paid in by cheque - as many point out the banks used this money to their own advantage by collecting interest on the vast sums overall involved with short term investments.
What really annoys me is if you transfer larger, often modest, sums of money, even between your own accounts, you get a phone call (this is the case with LloydsTSB) checking them out.
I've even been phoned the day BEFORE by my branch's staff when a large sum was paid into a current account, asking if there was any financial advice I could be given by the bank.
After the second time, I complained bitterly to the call centre operative and within half-an-hour got a phone call from the local bank manager. He agreed that I would receive such calls no longer, but explained that employees were under constant pressure to try and increase profitable turnover.
However, I've never had such calls from the Halifax, also owned by LloydsTSB.....
Last edited by: Stuartli on Sun 1 Aug 10 at 12:33
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...but explained that employees were under constant pressure to try and increase profitable turnover...
My brother is a traditional, cautious banker, currently working on commercial accounts only.
When he was in retail, he told me he felt very uncomfortable when the bank introduced its 'sell, sell, sell' policy.
He had enough seniority to resist it, but I think some of his younger colleagues tucked up their customers with products they didn't want or need.
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>>..but I think some of his younger colleagues tucked up their customers with products they didn't want or need.>>
If you can, read the April edition of Which?
>>..when the bank introduced its 'sell, sell, sell' policy.>>
There are nearly always far better offers elsewhere.
Last edited by: Stuartli on Sun 1 Aug 10 at 17:35
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SFAIK one can pay into First Direct over the counter at HSBC which own it.
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Yes - Perky you're right.
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>>>>What really annoys me is if you transfer larger, often modest, sums of money, even between your own accounts, you get a phone call (this is the case with LloydsTSB) checking them out.
Been with LLoydsTSB for over 30yrs now but I'm losing it with them these days for the amount of calls I get trying to sell me stuff or change to the latest *premium* account.
The record was one week when at each of two local branches when paying in I was asked if I had a few minutes to discuss my account with the manager.... then within that same week a call came from the head branch of the group asking I see the manager to discuss my account because *you haven't been in to see us for a while*.
On each occasion I establish there are no problems with my account then enquire what they want to take my time for. Always they insist they can save me money. In that last call they wanted to offer me a personal loan at 24.9% APR... cheeky gits.
My wife is with Barclays and has not received one hassling call in the past 10yrs.
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In fairness to LloydsTSB - I have received one business orientated call from them in recent months - I dumped a substantial amount of cash into a deposit account and they phoned me to say that the account's interest wasn't the best so they had taken the liberty of changing it to a higher paying one (all things are relative of course) - they did try and invite me to the branch but desisted once I pointed out why I wanted the cash there...they phone quite often to check fraudulent activity including when I was in the US, in fairness they also sent me a text there during the Ash Crisis to ask whether I needed to increase overdraft facilities (FOC) to assist cash flows. I bank with a number of institutions, Smile still come out best.
Last edited by: Pugugly on Mon 2 Aug 10 at 11:25
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>>In fairness to LloydsTSB
I do wonder if our branch group has a keen manager with an eye on bonus.
When they offered me this *golden opportunity* of a personal loan at 24.9% I had to remind the guy he should have noticed in my records we had 10x the amount offered on deposit at about 2%!
I asked why the loan APR was so high he commented my standing with the bank didn't qualify me for the best rates as they didn't see regular income from employment.
Fools.... I'm happliy self funding a two year gap between retiring early and drawing a company pension with just 10mths to go. He effectively said having a properly run account with them for over 30yrs counted for nothing.
Last edited by: Fenlander on Mon 2 Aug 10 at 11:41
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I have my current account with the Halifax.....do most things on-line now but always get a good welcome if I go in our branch. They don't hassle me though. Actually, I think the girl on the enquiry desk fancies me :-)
I have a large sum with the Leeds, cheque only. never hear from them. Another with Saga that produces a payment into the HX every month and a bit with Santander.
I get the odd letter saying I'm entitled to a HX loan of £8500 straight away. Trouble is, I'd have to pay them over £13K for the privilege.
Had a cold call from someone offering to help me with my debts the other evening.
I was in a bad mood 'cos me tea was ready. I said, 'Yes, all right , I'll go and get my CC statement ' I gave it a few minutes and let him run through his spiel. When he asked what sort of debt we were talking about, I said '£13. 45 '.....I don't think he was too happy !
Ted
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I think the girl on the enquiry desk fancies me :-)
Don't let on to Mrs Cams or she'll kick her dog and break her white stick !
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I'm at that time of life when I don't need loans and I spend a lot of time looking for the best savings deals.
In this day of electronic wizadry it's amazing just how many banks and building societies want a branch interview before you deposit £3,600 into an ISA or want a 2 year savings bond. Then it's a request to visit the branch again at the end of the savings term to close the account. The reason is pretty obvious to me: suck out as much personal information from the punter as possible and try and sell them all sorts of unrelated products.
Banks - I hate them!
Last edited by: Dulwich Estate on Mon 2 Aug 10 at 12:44
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...want a branch interview before you deposit £3,600...
The banks are obliged to act as (unpaid) money laundering checkers.
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>> ...want a branch interview before you deposit £3,600...
>>
>> The banks are obliged to act as (unpaid) money laundering checkers.
Not for sums as low as £3,600, thats below the threshold.
To be fair, when a large 6 figure sum was deposited into my current account, Nat West automatically created a savings account and moved it there for "security reasons" then phoned up to tell me what they had done.
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>> Don't let on to Mrs Cams or she'll kick her dog and break her white
>> stick !
Cheeky pugger !
Actually, mate, she's a bit ugly, shabby and down at heel. But the girl in the bank's quite dishy though !
Ted
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>>.they phone quite often to check fraudulent activity >>
This, apparently, is a myth. They do it to try and stop you moving money elsewhere or, alternatively, to try and persuade you to invest it with them.
One of my mates (not short of a bob or two) has just completely closed his LloydsTSB account and moved elsewhere because of all the hassle and because he couldn't transfer comparatively modest amounts of money into other accounts over a certain sum on a one-off or daily basis.
Don't know what the actual maximum sum involved is, but in the case of the Halifax it's £15,000.
Last edited by: Stuartli on Mon 2 Aug 10 at 18:58
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We're a bank - we don't take cash - Manatee
