Banks in the UK have finally moved towards tightening up the money transfer system which normally leaves customers paying interest when transfers are not done in time.
In recent years criticism has grown of the time it takes banks to move cash between accounts by cheque, standing order, internet or telephone transfer.
Consumer groups have long been campaigning for change. They have always maintained that account holders lose out on the amount of interest they could earn during the time the money is en route to the recipient. Instead the banks earn this interest.
However Apacs, the banking body have announced a ‘same day’ service for telephone and internet payments, so cash transfers get to their destination in a few hours and not days. These changes are due to be implemented in 2007.
Paul Smee, Apacs chief executive said, "The service will be available all day, every day, and means customers will have the flexibility and convenience of moving money between accounts or paying bills on the same day."
Philip Cullum from the National Consumer Council said, "This is fantastic news for consumers."
Another bank, the HSBC, said it would also stop earning interest on customer’s money being transferred between accounts.
They said the typical three day period for cheques to clear, telephone and internet transfers, interest will be paid to the account holder until the cash was credited to the payee.
Apacs will make UK banks hurry up their cash transfers
Apacs will make UK banks hurry up their cash transfers
Thu, 22 Dec 2005
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