Confusion caused as bank tweaks cheque system

Wednesday 09 January 2019

A letter sent out to customers by Natwest International has caused some confusion locally, as people thought their bank had decided to stop processing cheques altogether.

In reality, Natwest has just stopped allowing cheques to be paid in for its Cash Management Accounts, which focus on foreign currency transactions.

But the letter it issued left this detail slightly unclear for some, who had to contact the bank to ensure they would still be able to use cheques in 2019.

The letter itself was discussing cheque books, these Cash Management Accounts, savings rates and fees, and in one part, said: "Due to changes in the way that cheques are cleared for cash management accounts, from 31 December 2018 it will no longer be possible to offer cheque services including paying in". 

This left some people concerned over how they would continue to bank if they didn't have access to online banking, and what they would do with cheques received over Christmas. They've now been assured they don't need to worry though. 

A spokesperson for Natwest International said they understood the letter had been quite confusing and they were happy to clarify the changes would just be for multi currency accounts.

"In November we wrote to our customers to let them know that as the majority of our Cash Management Account customers have stopped us­ing the account for foreign currency cash transactions, we’ll be removing paying cash in, taking cash out and overdrafts for this type of account from 1 February 2019," the spokesperson said.

Pictured: Natwest International has apologised for any confusion caused.

"We understand that there has been some confusion caused by this letter around whether the bank will continue to process cheques. For Cash Management Accounts only from 31 December 2018 it will no longer be possible for us to offer cheque services including paying in. Any cheques drawn on this type of account that are presented for payment after this date will be returned unpaid. This does not affect other accounts held with NatWest International.

"We’re sorry for any confusion this has caused and will make sure any future letters from us are clearer."

The changes to Multi Currency Cash Management Accounts will come in from the start of February. 

Customers who use those accounts will be able to continue to pay in via branches and ibanking. Services such as the US dollar and Euro Charge Cards, receipt of sterling payments and the FX transactions will all remain available. 

Pictured top: Natwest International's Highstreet Branch in Guernsey.