English Banking Law

COMPARE AND CONTRAST THE RESPECTIVE PROTECTION BANKS AND CUSTOMERS ACQUIRE WHEN ontogenesis CHEQUES , AS APPOSED TO CARDS , AS A METHOD OF PAYMENTINTRODUCTIONThere be three types of cheque dodges exists in UK viz . speculative counterfeit and machinationulently 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 , unfit cheques fraud was estimated at ? 30 .9 m in 2005 and fraudulently altered cheque fraud was estimated at ? 6 .2 millionsSOURCE : cheat FACTS -2006 APACS- UKThis studies the various safeguards available to banks and customers when using cheques as opposed to tantalise , as method of paymentPROTECTION AVAILABLE TO CHEQUE PAYMENTS UNDER devolve on OF EXCHANGE ACT 1882 , UK (BEA ) AND CHEQUES ACT 1957Under Bill of Exchange do work , 1882 , under section 81 A , a non-transferable cheques has been define 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 to a higher place as having been inattentive by reasons only of his failure to concern himself with all purported warrant of a cheque which under subsection (1 above or otherwise is not transferable (Cheques carry , 1992 one jeopardy associated with the cheques bearing defective or unauthorized warrants . withal protection is available under the English Bills of exchange Act (BEA , or the Act . Under BEA , a legitimate pall aircraft carrier of a cheques collectible to immune carrier attai n a practiced name to the instrument overc! oming thereby any adverse say of self-possession that might have been hold good against his predecessor .

therefore , the payment by the drawee bank to those acquirers discharges the cheques as head 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 shell of payable to cheques , issuing 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 issue collect to stolen cheques is to use cros sed 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 bearer does not reallocate the cheques theft losses but it minimizes the loss and thus benefits the fellowship on whom the loss falls . provided the losses arose cod to stolen cheques or loss cheques payable to bearer fall on the dispossessed possessor under BEA . thusly 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, say it on our website: BestEssayCheap.com

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