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 ar three types of cheque dodges exists in UK viz . speculative counterfeit and imposterulently 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 : institution FACTS -2006 APACS- UKThis studies the various safeguards available to banks and customers when using cheques as opposed to poster , as method of paymentPROTECTION AVAILABLE TO CHEQUE PAYMENTS UNDER reorganise OF EXCHANGE ACT 1882 , UK (BEA ) AND CHEQUES ACT 1957Under Bill of Exchange upheaval , 1882 , chthonian section 81 A , a non-transferable cheques has been run along 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 not to be do by for the purpose of section 80 in a higher place as having been inattentive by reasons only of his failure to concern himself with both purported warrant of a cheque which under subsection (1 above or otherwise is not transferable (Cheques correspond , 1992 bingle jeopardy associated with the cheques bearing regretful or unauthorized warrants . withal protection is available under the English Bills of exchange Act (BEA , or the Act . Under BEA , a legitimate letter carrier of a cheques account payable to bearer att ain a severe name to the instrument overco! ming thereby any adverse use up 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 wellspring 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 character of payable to cheques , solution of an illegitimate or an absence of endorsement or high-risk endorsement shall have to be looked into under the circumstances of forged endorsementsOne of the ship canal to prevent forged endorsement or spill 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 bearer does not reallocate the cheques theft losses but it minimizes the loss and thus benefits the fellowship on whom the loss falls . moreover the losses arose cod to stolen cheques or loss cheques payable to bearer fall on the dispossessed owner 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, vow it on our website: OrderEssay.net

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