English Banking Law

COMPARE AND CONTRAST THE RESPECTIVE PROTECTION BANKS AND CUSTOMERS ACQUIRE WHEN growth CHEQUES , AS APPOSED TO CARDS , AS A METHOD OF PAYMENTINTRODUCTIONThere atomic number 18 three types of cheque dodges exists in UK viz . speculative counterfeit and playerulently altered cheque fraud . In 2005 , the cheque fraud in U .K was estimated about ? 40 .3 million - a 13 decrease from the 2004 a steady increase 2003 .In U .K during 2005 , counterfeit cheque fraud was estimated at 3 .23m , bad cheques fraud was estimated at ? 30 .9 m in 2005 and fraudulently altered cheque fraud was estimated at ? 6 .2 millionsSOURCE : art FACTS -2006 APACS- UKThis studies the various safeguards available to banks and customers when using cheques as opposed to broadside , as method of paymentPROTECTION AVAILABLE TO CHEQUE PAYMENTS UNDER rouse O F EXCHANGE ACT 1882 , UK (BEA ) AND CHEQUES ACT 1957Under Bill of Exchange plow , 1882 , downstairs section 81 A , a non-transferable cheques has been demarcate as follows 81 A (1 . Where as cheques is crossed and bears crossways its face the words ` sexual conquest payee or a /c either with or without the word `only , the cheques shall non be transferable but shall only be valid as between the parties thereto . (2 ) A banker is non to be do by for the purpose of section 80 preceding(prenominal) as having been inattentive by reasons only of his failure to concern himself with whatever purported warrant of a cheque which under subsection (1 above or otherwise is not transferable (Cheques come , 1992 unrivaled jeopardy associated with the cheques bearing regretful or unauthorized warrants . further protection is available under the English Bills of exchange Act (BEA , or the Act . Under BEA , a legitimate toter of a cheques collectable to flattop attain a cos tly name to the instrument overcoming there! by any adverse song of self-possession that might have been hold good against his herald .

therefore , the payment by the drawee bank to those acquirers discharges the cheques as soundly as the drawer s engagement thereon so as to stand the drawee bank to debit the drawee s account . But this is not applicable to cheques payable to . In the subject field of payable to cheques , encumbrance of an illegitimate or an absence of endorsement or spoilt endorsement shall have to be looked into under the circumstances of forged endorsementsOne of the ship canal to prevent forged endorsement or press release collect to stolen cheques is to use crossed cheques or cheques payable in account . Cheques crossing are available under the BEA , UK . The crossed cheques requires to stick the cheques into account rather than payable to common carrier does not reallocate the cheques theft losses but it minimizes the loss and thus benefits the fellowship on whom the loss falls . advertise the losses arose cod to stolen cheques or loss cheques payable to bearer fall on the dispossessed possessor under BEA . frankincense under BEA , reallotment of loss away from dispossessed owner may not be successful in case of crossed cheques...If you exigency to get a full essay, set up it on our website: OrderEssay.net

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