Common enquiries
Who is the Office of Fair Trading (OFT)?
The OFT is a government department set up as the UK’s consumer and competition authority. They aim to empower consumers with knowledge and skills to make informed choices.
What is the cheque clearing process?
This is the process that financial institutions follow to transfer the value of a cheque from the payer to the beneficiary’s account.
Why is the OFT introducing the customer promise?
The aim of the promise is to standardise the cheque clearing process across all UK financial institutions and to provide customers with more certainty and transparency over the clearance of cheque deposits.
Is the OFT customer promise relevant to me?
If you pay a Sterling cheque into a UK based bank account from 3rd December 2007, then this OFT customer promise is relevant to you.
How do I benefit from the introduction of the OFT customer promise?
You will know the latest point at which you can start to earn interest on a cheque deposit, when you can withdraw the funds and when you can be sure that the money is yours and cannot be returned unpaid. (e.g. will not bounce.)
Do I need to do anything?
No. It is unlikely that OFT customer promise will affect how you operate your account.
How is the OFT customer promise calculated?
The calculation of T+2, T+4 or T+6 is based on working days which excludes Saturdays, Sundays and English bank holidays.
Does the OFT customer promise apply to all parts of the UK?
The OFT customer promise applies to all financial institutions in England, Scotland, Wales and Northern Ireland. The only exceptions are when Scotland and Northern Ireland have different bank holidays to England. For example;
- ‘Scotland only’ bank holidays are treated as a normal working day for cheque clearance purposes
- ‘Northern Ireland only’ bank holidays are not treated as a normal working day, so the customer promise would be subject to a day’s delay.
The promise does not apply to financial institutions in the Channel Islands, Isle of Man or Gibraltar.
Why is the OFT customer promise different for current accounts and savings accounts?
The OFT customer promise states that you can withdraw a cheque at T+4 for current accounts and at T+6 for savings accounts. The extra days allow for different withdrawal notice periods applied by some Banks and Building Societies. (This is not applicable to Co-operative Bank accounts, as we work within the maximum timescales of T+2, T+4 and T+6 for all current and savings accounts).
Will the introduction of OFT customer promise mean a quicker clearing process?
Not necessarily. The aim of the OFT customer promise initiative is not to speed up the clearing process but to establish clearer timescales and give greater certainty.
Under what circumstances may the OFT customer promise be over ruled?
This will only happen in very special circumstances, for example: -
- an event outside of our control such as a strike by a courier delivery service or very serious weather conditions preventing delivery
- if you, the beneficiary of the cheque are found to be a knowing party to fraud
- if the cheque has been credited to your account in error by your Bank.
How can I reduce the risks associated with issuing/ accepting cheques?
If you feel you are at risk in accepting a cheque (perhaps you are being asked to release goods to an unknown party for a large sum) then you could consider a different payment method that gives you more certainty. Talk to us about alternative options by calling the relevant team below.
Can you tell me if my account is a current account or a savings / deposit account?
| Current Account | Deposit / Savings Account | |
|---|---|---|
| Personal Banking | Cashminder Current account Privilege current account Privilege Premier current account Student account | Privilege Premier Savings Smartsaver Bonus Account Future Fund Cash Mini ISA* Fixed Term Deposit Guaranteed Savings Bond Pathfinder Worldwide (Offshore) Save Direct Worldwide (Offshore) Pathfinder (closed to new accounts) Save Direct (closed to new accounts) Deposit (closed to new accounts) Tessa Deposit (closed to new accounts) Cashsaver (closed to new accounts) Savewise (closed to new accounts) Investment 90 (closed to new accounts) High Interest Tracker (closed to new accounts) |
| Business Banking / Corporate Banking | Business Directplus Business Current Account Community Directplus Co-operatives Directplus FSB Business Banking Clarity Business Banking | Business Select Deposit Accounts Guaranteed Investment Accounts Corporate Reserve Corporate Treasury Account Public Sector Reserve |
*note, the term 'cash mini ISA' changing to 'cash ISA' from April 6th 2008
What about credit card cheques, are they covered by the customer promise?
Yes, as they are processed through the cheque clearing system the same as every other cheque.
We would like to stress that the customer promise timescales of T+2, T+4 and T+6 are maximum timescales as defined by the OFT. The Co-operative Bank will operate within or ahead of the timescales shown above for current and savings accounts.
If you have any more questions please call: 08457 212 212
