New security measures in place for cheques
(14 November 2006)

Changes to the way cheques are handled and processed spell good news for trusting consumers and businesses, it has been announced.

New measures mean that cheques can no longer be cancelled after six working days, eliminating the possibility that consumers will have money reclaimed from their bank account if the cheque either bounced or was fraudulent.

Cheques will also no longer be judged by whom they have been written by, eliminating the need for lower-income members of the public to wait several days for clearing.

The rules, set to come into force a year from now, are an attempt to restore public confidence in a payment method that is now no longer accepted at many high street stores, with Boots and WHSmith just two of the retailers experimenting with a non-acceptance policy.

"Britain's centuries-old cheque clearing system has for too long been slow and confusing. Today's announcement is a positive step," said Philip Cullum, deputy chief executive of the National Consumer Council.