AGENCY MANUAL STERLING
Contents
1. FN UJ Missing Cheques to be returned Unpaid Missing cheques to be returned for the reason Sight of Paper Required Non standard paper Sight of Paper Required Not Prepared to pay Against a Copy Reversal of SOPR Decision SOPR Thresholds Outward Unpaids Cheques Received between T 4 and T 6 Outward Unpaids Cheques Received after T 6 Unpaid Inwards Inward Unpaid Cheques received on T 3 Inward Unpaid Cheques Received between T 4 and T 6 Inward Unpaid Cheques Received after T 6 Non Receipt of Unpaid Cheques Non Receipt of Clearing Debit Advice Current Account Switch Service Cheque Forwarding Missing Clearings Special Presentations Stopped Cheques Cheque Conversion Claim Beneficiary claiming non receipt of funds Returning Direct Debits Clearing Adjustments Debits and Credits No Clearings or Wrong Clearings received Clearing Adjustments Debit Clearing Adjustments Mis sorted Items Drawn on another bank financial institution Errors in Automated Debit Clearing Missing items General Credit Clearing Adjustments Clearing Adjustments Bureau Chapter 3 Lloyds Bank Contact List Chapter 4 Example stationery printouts and forms Examples of stationery for remitting work Examples of stationery for in clearing Examples of stationery for special procedures Examples of computer listings 13 13 14 14 14 14 15 15 15 15 15 15 15 16 16 16 16 17 17 17 17 18 18 18 18 18 182. 21 of 23 Chapter 4 Example stationery printouts and forms On the following pages are examples of stationery referred to in this manual Lloyds Bank must vet all forms and stationery which you use before you use them Before you have paying in books cheque books or forms printed please contact the Cheque and Credit Approval Group for help and advice If you are opening anew Agency the Sort Code will not be put in operation until your stationery has been approved by the Cheque and Credit Approval Group Examples of stationery for remitting work Please click on the following hyperlinks for example of stationery 39R Docket Control Voucher Summary Random Credits Bulk Batch Ticket 46R Docket Control Voucher Summary Debits Lloyds Bank STV Sub Total Voucher 11029 Claim for unpaid 11030 Advice of unpaid item only to be used when passing the entry by Bacs 12363 Claim for missing unpaid item copy acceptable not acceptable only 12364 Advice of missing unpaid item copy acceptable not acceptable only only to be used when passing the entry by Bacs Examples of stationery for in clearing 11023 Direct Remittance Direct Debit Scheme Refund Request Direct Debit Scheme Indemnity Claim please note these should only be used in accordance with the Paying Bank Guide and Rules to the Direct Debit Scheme submission of paper forms exceptions process Direct D
3. 19 19 19 20 22 22 22 22 22 Introduction Before you begin to use our Agency Service it is vital that you understand how the service works and all that is required Therefore please read this manual carefully and ensure that you are able to comply with the standards and practices which are outlined Lloyds Bank is a Settlement Member of various UK Industry Payments Schemes For a full list of payment schemes please visit the UK Payments Administration website at www ukpayments org uk Our interests are represented on all relevant committees and we also represent our customers who are referred to as Agency Participants or Indirect Clearers The Bank must also abide by all regulations and standards outlined by the industry bodies of the payment schemes Throughout this manual you will see that there are strict regulations which are governed by the Cheque and Credit Clearing Company C amp CCC and other industry bodies These include the issue of cheque books and the timescales for returning cheques etc As an Agency participant you are expected to adhere to these Standards and practices Your Relationship Manager will be pleased to answer any questions you may have regarding these regulations As part of your day to day banking you will also be in regular contact with various specialised areas of Lloyds Bank and full contact details for these can be found in Chapter 3 Finally Lloyds Bank is delighted to be working
4. a Separate form is to be used for each adjustment The Credit Clearing Adjustment Forms should be used for clearing adjustments which relate to your Inward Credit Clearings Examples of the forms can be viewed by clicking on the following hyperlinks Credit Clearing Adjustment Form BGC Form number 12385 Credit Clearing Adjustment Form IBD Form number 12386 The Debit Clearing Adjustment Forms should be used for clearing adjustments relating to your Inward Debit Clearings Examples of the forms can be viewed by clicking on the following hyperlinks Debit Clearing Adjustment Form IBD Form number 12387 Debit Clearing Adjustment Form BGC Form number 12388 In each case the adjustment form should be completed with full details of the adjustment including your Sort Code and account number details in the bank giro credit or inter branch debit section Failure to include these details will result in the form being returned to you with no entries passed What should I do with my completed form Step 1 Fax a copy of your form listing the front and back of your cheque or bank giro credit to R amp A on 01604 665477 665050 Step 2 Send an original copy of your form without detaching the IBD BGC listing the front and back of your cheque or bank giro credit to Research amp Adjustment R amp A at Lloyds Bank plc Research amp Adjustment IPSL Blaise Pascal House 100 Pavilion Drive Brackmills Ind
5. it has not been possible to process them on the automated system Part 3 may also contain some over cheques as described in Part One above The following action should be taken Add list all cheques over 1 000 in Part 1 of the ADC listing using the amount in figures field of the cheque and NOT the encoded amount This ensures that the collecting bank has correctly encoded listed these items and that any errors are identified as quickly as possible All cheques listed in Part Two and Part Three should be add listed in the manner described above Paying Cheques Remember to pay a cheque you must hold a customer mandate to pay cheques written by them If the mandate to pay Is revoked by verbal or written warning instruction by customer s instruction stop marital dispute dissolution of partnership etc or by compulsion of law bankruptcy Mareva injunction you must not pay the cheque To return cheques unpaid see Unpaids Outwards Credit Clearing Credit Clearing Listing You will receive a Credit Clearing Listing each day together with the Bank Giro Credits shown on it which are used to credit your customers accounts 10 of 23 The Listing shows the following information AMOUNT The value of the individual Bank Giro Credit DIN This is an identifying number placed on the back of the cheque as part of the Inclearing process ACC REF NUM The Account Number from the codeline of the BGC Th
6. pay no pay decision T 3 LBG will provide details of the unpaid cheque to you following the same process as occurs today T 3 Upon receipt of the fax you must debit your customer to suspend 2 4 6 in accordance with cheque processing rules NB LBG will not pass any entries to your account at this stage T 3 Reset T 0 LBG will extract any cheques that have been returned account switched and as long as the OB has provided the NB details we will present the cheque for a pay no pay decision to the NB using a new memo process T will be reset to 0 T 3 Reset T 0 To align this reset memo process to reset 2 4 6 you must re credit your customer s account NB LBG will not pass any entries to your account at this stage Reset T 2 T 3 NB will make a pay no pay decision If paid no further action is required If the cheque is not paid the paying bank will return the cheque to LBG Reset T 3 We will advise you of the unpaid cheque and debit your account following the same BAU process for Inward Unpaid Cheques received on T 3 Missing Clearings In the event that an entire clearing is not delivered you will need to contact iPSL Customer Care Helpdesk and they will attempt to locate your clearings If necessary they will arrange for a copy of your automated debit clearing listing to be faxed to you Using the automated debit clearing listing you will need to issue an advice of unpaid cheq
7. sorting code encoded on the cheque If the bank branch returning the item is not the drawee Paying Bank this will be the sorting code of the returning bank branch or Central Unpaids Unit Destination bank name and address and sorting code number Drawer s account number Amount Reason for Return including whether the cheque is present or not The unpaid cheque must be received by the collecting bank before 9 30am on the next business day Please note you can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed to a greater risk of loss should an unpaid be received late by the collecting bank Wrongly Delivered Items which have been listed and charged If you receive individual wrongly delivered items in your inward debit clearing that have been listed and charged you should return the cheques to the Collecting Bank with the reason Wrongly Delivered No Account using a Manual Claim for Unpaid Form where you pass entries using the debit clearing or Advice of Unpaid form where you pass entries using Bacs You must write the reason for return in red ink on the top left corner of the cheque and send It to the collecting bank The unpaid cheque must be received by the collecting bank before 9 30am on the next business day These cheques must be returned in a separate envelope clearly marked
8. the back of the bundle When you get to the end of the final BGC bundle total the add listing please do not include a STV at the back of the final BGC bundle Complete one Banker s Payment or cheque for the total of BGCs remitted Complete a Batch Ticket with today s date 7 of 23 Please note Where the number of batch giro credits exceeds 2 500 they should be separated into batches of 2 500 maximum with a Bankers Payment or cheque and Batch ticket for each Complete the summary voucher 39R with the date and total BGC value Bundle the entire remittance in the correct order with all vouchers present In accordance with the Credit Random Remittances Preparation aide memoire Complete ared polylope with the date and your remitting details Place all items in the red polylope and securely seal the polylope Full code line data must be retained either by microfilming your work or using another acceptable method which is available on the market Checking the finished Remittances The following points should be checked before the cheques credits are submitted Any error in listing the cheques credits has been spotted and the listings have been amended correctly in accordance with the Errors section detailed below Ensure the following types of voucher are not included in the remittance Euro denominated cheques please see the Euro Agency Manual for instructions on how to remit these Club or sho
9. to the top portion of the form with a copy of the Automated Debit Clearing Listing and the procedures listed under the heading Clearing Adjustments In the opposite column should be followed Before despatch fax a copy of the clearing adjustment form cheque front and back and the debit clearing listing to R amp A Cheque is received but not listed You should debit the customer s account and issue Clearing Adjustment Form 12387 The form should be completed with as much detail as possible and sent by direct post together with a clear photocopy of the item front and back to R amp A Before despatch fax a copy of the clearing adjustment form cheque front and back to R amp A Should the item s be for another bank you should contact R amp A immediately 18 of 23 Missing items General If a photocopy of a cheque is available it should be debited to your customer s account without their authority This is standard Inter Bank practice and we would expect in all but extremely unusual circumstances for you to adhere to this practice If codeline details only are available it is also standard Inter Bank practice that you would pay the cheques If you choose not to pay the cheque for any reason you must follow the procedures listed under the heading Unpaids Outwards Missing Items with full codeline details available in the Day s Work Debit customer if customer is identifiable If customer Is unidentifia
10. way to trace where they have got to in their investigations You must take no action until R amp A present the copy to you for payment as passing additional entries etc will further confuse the position SOPR Thresholds Before using the Sight of Paper Required return reason you may want to consider the following The majority of missing cheques will be in order and would be paid on presentation Your customer s account will be debited with the amount of the cheque on the original date of presentation Using SOPR will generate a credit to your customers account The account will then be debited a second time if you decide to pay against a photocopy of the cheque upon presentation Due to the manual nature of the process there will be delays in the collecting bank obtaining a copy of the cheque and presenting it for payment Using SOPR will create additional workloads Bearing in mind these points you may want to consider setting an internal threshold under which the SOPR return reason will not be used The amount will depend on your risk appetite as if it later transpires that there is a technical irregularity with the cheque then it will be too late to return the cheque unpaid This operational loss will have to be borne by you as you did not use the SOPR return cheque route 14 of 23 Outward Unpaids Cheques Received between T 4 and T 6 If a Collecting Bank raises a notice that they have received an
11. COMMERCIAL BANKING AGENCY MANUAL STERLING June 2014 LLOYDS BANK Contents Introduction The 2 4 6 and 2 6 6 changes Chapter 1 Remitting work to Lloyds Bank outclearing Stationery Cheques and Credits Control Vouchers Miscellaneous Stationery Orders Daily Routines Processing the Cheques and Completing Your Daily Debit Remittance Transaction Codes for Debits Processing the Credits Transaction Codes for Credit Remittance Completing your Daily Credit Remittance Checking the finished Remittances Errors Remittance Differences A Differences discovered by yourselves B Differences identified by iPSL Missing Cheque s Credit s not received by iPSL Cheque s credit s remitted by yourself but not listed within a remittance Cheque s credit s incorrectly listed Non clearing items Reconciliation Missing Clearing Bags Chapter 2 Processing your In Clearing Routine Procedures Debit Clearing Paying Cheques Automated Debit Clearing Listing Credit Clearing Credit Clearing Listing Bureau Clearing Special Procedures Unpaid cheques Unpaids Outwards Legal Orders Claim for Unpaid manual claim Advice of Unpaid Item Bacs Wrongly Delivered Items which have been listed and charged Wrongly Delivered Items which have not been listed and charged Uncrossed Returns O O O O O O O O O CO ON NN NNN DW DDD HD HO UI A e e e e BP RE BP BP BP BP PRP PB PB PB PpP NNN N BF BF BP O O O O OOO
12. OPR advices please contact the R amp A Disputes Team for further guidance Special Presentations You may be asked by another bank to determine fate on an item drawn on a customer of yours as a Special Presentation or Direct Remittance In this case you will receive items directly from the presenting bank and you will need to have procedures in place to handle such items accordance with the Cheque and Credit Clearing Company Special Direct Presentation Procedures When presented by post the cheque must be accompanied by a form incorporating a tear off bank giro credit slip For amounts less than 500 000 settlement is through the Credit Clearing using the bank giro credit slip attached to the presentation form alternatively Bacs or CHAPS may be used For amounts of 500 000 or more settlement is made via CHAPS The CHAPS payment should be made on the day of presentation 16 of 23 As a safeguard against fraud the CHAPS message field should indicate that the payment is in settlement of a special presentation and quote any reference number which has been allocated by the Collecting Bank The names of the drawer or payee of the cheque should not be quoted The remitter s name will be that of the Paying Bank and the beneficiary s name that of an internal account at the Collecting Bank When presented with a cheque for special presentation you must give advice of fate over the telephone and give your name to the recipient requ
13. The Isle of Man branch of Lloyds Bank International Limited is licensed by the Financial Supervision Commission to conduct banking and investment business and is registered with the Insurance and Pensions authority in respect of General Business The Guernsey branch of Lloyds Bank International Limited is licensed to conduct banking investment and insurance business by the Guernsey Financial Services Commission under the Banking Supervision Bailiwick of Guernsey Law 1994 the Protection of Investors Bailiwick of Guernsey Law 1987 and the Insurance Managers and Insurance Intermediaries Bailiwick of Guernsey Law 2002 LLOYDS BANK PM0744 07 14
14. Unpaid cheque between T 4 and T 6 they may telephone you directly or the R amp A Disputes Team Upon receipt of the call from the Collecting Bank you should immediately telephone the R amp A Disputes Team with the cheque details and confirmation that you returned the cheque on E 1 i e the day you received the cheque in your debit clearing Alternatively if the Collecting bank contacts the R amp A Disputes Team direct they will advise you by telephone If an irrecoverable loss occurs the Collecting Bank will either contact you direct or the R amp A Disputes Team You should then liaise with the R amp A Disputes Team and they will investigate and ascertain where the error occurred and liaise with the Collecting Bank where appropriate Outward Unpaids Cheques Received after T 6 If a Collecting Bank issues a notice to the effect that they have received an unpaid cheque after T 6 they may telephone you directly or the R amp A Disputes Team You should liaise with the R amp A Disputes Team and they will investigate and ascertain where the error occurred and liaise with the Collecting Bank where appropriate Unpaid Inwards Inward Unpaid Cheques received on T 3 Cheques which have been remitted to iPSL using one of our Bulk Cheque Schemes and crossed by you will be returned by the paying bank directly to iPSL Bulk Centralised Unpaids BCU BCU will fax a copy of the unpaid cheque and telephone you to confirm receipt of the fax no
15. Wrongly Delivered Items and be received by the collecting bank before 9 30am on the next business day Please note you can decide on the method of returning an Unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed to a greater risk of loss should an unpaid be received late by the collecting bank Wrongly Delivered Items which have not been listed and charged If you receive individual wrongly delivered items in your inward debit clearing that have not been listed and charged you should return the cheque to R amp A using a covering compliment Slip confirming that no entries have been passed and the cheque was received in error You must not pass any entries or raise any clearing adjustment forms If you receive a batch of wrongly delivered cheques you should contact iPSL Customer Care Helpdesk for advice 12 of 23 Uncrossed Returns If the crossing stamp of a cheque to be returned unpaid is absent or illegible the cheque should be returned to the collecting banks default Sort Code on T 2 i e the same day the cheque is received in your debit clearing You will need to refer to the Sort Code column on the automated debit clearing listing and forward the unpaid advice and cheque to the collecting bank default Sort Code where the first two digits of the Sort Code are listed Click here to view Collecting bank Sort Codes and locations In t
16. al Information from Collecting Bank to Beneficiary Bank should be included on the Claim Advice of Unpaid Drawee branch sorting code number Collecting Bank branch reference Name of account credited Beneficiary Sort Code and account number where available Date item paid in Amount of credit Inward Unpaid Cheques Received between T 4 and T 6 Upon receipt of an unpaid cheque advice fax from us you must check that the return has been advised to you before the close of business on T 6 If an unpaid cheque is returned and advised to you between T 4 and T 6 you should debit your customer s account However if by debiting your customer you feel there Is the real possibility of asubsequent irrevocable loss then you will need to put the Paying Bank on notice NB Notice must be raised by exception rather than the rule To put the paying bank on notice you should telephone the R amp A Disputes Team within 2 working days and provide them with the cheque details together with confirmation of T Please also confirm this telephone call by faxing notification to R amp A Disputes Team They will then contact the Paying Bank and raise the notice with them If an irrecoverable loss occurs you should contact the R amp A Disputes Team again and they will investigate to ascertain where the error occurred and liaise with the Paying Bank to obtain reimbursement As disputes have to be notified by T 16 Lloyds Bank will require your instr
17. ble you will need to follow the procedures listed under the heading Missing Cheques to be returned for the reason Sight of Paper Required Please note When completing the claim for missing unpaid copy acceptable not acceptable only form please ensure the No account and Copy not acceptable boxes are crossed Missing Items Required to be returned unpaid You will need to follow the procedures listed under the heading Unpaids Outwards Please note Should the cheque subsequently arrive at your Branch no action is required as you would have previously debited the collecting bank by following the procedure Missing cheques to be returned unpaid etc Credit Clearing Adjustments Credit s listed but not received If you require a copy of the bank giro credit write to R amp A to arrange the supply of a photocopy of the original BGC The following information will be required Work date Total value of the clearing Amounts of the two BGCs either side of the missing BGC on the list Bank Giro Credit received but not listed If the credit s is payable to yourselves you should credit the customer s account and iissue Clearing Adjustment Form 12385 The form should be completed with as much detail as possible and sent by direct post together with a clear photocopy of the item front and back to R amp A Before despatch fax a copy of the clearing adjustment form and bank giro credi
18. cation and write their full name on the back of the item to be returned Claim for Unpaid manual claim Advice of Unpaid Item Bacs Form number 11029 claim for unpaid manual claim should be used where you make claims through the debit clearing The form for claims for unpaids manual claim is in two parts 1 Acopywhich is passed through clearing and should therefore include the destination Sort Code and Transaction Code 13 in the encoding line 2 Acopywhich is sent together with the cheque with the reason for return to the receiving Bank Branch or central processing centre there is also a file copy which should be retained for your own records Alternatively if you make claims via Bacs form number 11030 advice of unpaid item Bacs should be used The advice of unpaid Bacs consists of a copy which is sent together with the cheque bearing the reason for return to the receiving Bank Branch or central processing centre anda file copy to be retained for your own records The following information should be included when completing a Claim for Unpaid Manual Claim Advice of Unpaid Bacs A separate advice must be used for each unpaid item and the following detail must be included Date of advice which should be the date the decision is made to return the item Unpaid i e the day you receive the cheque in your debit clearing Drawee Paying Bank or branch sorting code number which will be the address and
19. d sorting code encoded on the cheque If the bank branch returning the item Is not the drawee Paying Bank this will be the sorting code of the returning bank branch or Central Unpaids Unit 13 of 23 Destination bank name and address and sorting code number Drawer s account number Amount Reason for Return including whether it is acceptable to the Paying Bank for a copy of the item to be presented Where there Is no indication it will be assumed that a copy is acceptable ISN number details taken from the automated debit clearing listing DCV total and fixing it is important these details are included on the advice claim for Unpaid where the serial number and account number of the missing item has not been listed on the automated debit clearing listing As you will not have the original cheque and therefore no crossing stamp details you will need to refer to the Sort Code column on the automated debit clearing listing and forward the unpaid advice to the collecting bank default Sort Code where the first two digits of the Sort Code are listed Click here to view Collecting bank Sort Codes and locations In the event that this information is not clear or there is insufficient data you should telephone the R amp A Helpdesk and provide them with full codeline details of the cheque and DIN number which can be found on the automated debit clearing listing R amp A will check their records and will advise you as to w
20. e an Automated Return of Unpaid Direct Debit ARUDD via the Bacs Payment Services website For detailed information on the procedures that need to be followed please refer to the following Bacs User Guides AServices Member and Agency Guide Payment Bank Guide and Rules to the Direct Debit Scheme Please note to obtain access to the Bacs reference user guides please click here Credited in error Ifa credit cannot be applied you will need to generate an Automated Return of Unapplied Credit ARUCS via the Bacs Payment Services website For detailed information onthe procedures you need to follow please refer to the Bacs A Services Member and Agency Guide Please note to obtain access to the Bacs reference user guide please click here Overall amount of debit credit incorrect Contact STP Bureau direct 19 of 23 Chapter 3 Lloyds Bank Contact List Please note Lloyds Bank has outsourced paper clearings to iPSL IPSL 11A Northfield Drive Northfield Milton Keynes MK15 0DQ Missing Work Agency BACS Service Agency Cheque Services Paper Clearing Accounting Enquiries Bureau Clearing Accounting Enquiries Non delivery of any one all combination of the following daily deliverables Paper Debit Clearing Valid Prime items Paper Debit Clearing Manual Reject items Paper Debit Clearing Listing Paper Credit Clearing Valid Prime items Paper Credit Clearing Manual Reject it
21. e customer can draw funds against the cheque from any channel Customers have certainty of fate if the cheque has not been debited back to their account by the close of business on T 6 The cheque is definitely cleared although there are exceptions relating to fraud if the customer him herself is involved in the fraud These changes apply to customers paying in UK Sterling cheques issued by or deposited in to Sterling accounts with UK banks and building societies The 2 4 6 changes have been implemented for Sterling current accounts and basic bank accounts whilst for UK Sterling savings accounts the maximum time limit for withdrawal is longer 6 days rather than 4 i e 2 6 6 Bank Holidays In determining whether an item has been returned after E 2 allowance needs to be made for Bank Holidays that may be in place in England Isle of Man Northern Ireland or Scotland in isolation Such Bank Holidays do not impact the customer proposition Suspending the 2 4 6 2 6 6 proposition Due to the manual nature of paper clearings from time to time items will be lost and or delayed at various points during the process The proposition can be suspended by debiting your customer s account Failure to debit your customer s account before the close of business on T 6 may lead to an operational loss as you will not be able to debit their account without their express permission in the event that the cheque is Subsequently unpaid Th
22. e are shown below No other reason should be written on any cheque Reasons for return 01 Refer to drawer 02 Refer to drawer please represent 03 Effects Uncleared 04 Notsignedin accordance with mandate 05 NoMandate 06 Payment stopped 07 Payment stopped Theft Reported 08 Payment stopped Awaiting Confirmation Please Represent 09 10 11 12 13 14 15 16 17 18 19 20 21 22 7 24 25 26 27 28 20 30 31 32 33 34 35 36 37 38 39 40 41 11 of 23 Payment Prohibited by Legal Order Payment Prevented Insolvency Act Proceedings Crossed by two Banks Drawer Deceased Suspected Fraudulent counterfeit Cheque discovered within the clearing cycle Account Closed Not allocated No Account Non Clearing Item Post Dated Out of Date Words and Figures Differ Alteration Requires Drawer s Signature Payee s Discharge Required Irregular Cheque Incomplete Cheque Drawn in Pencil Mutilated Cheque Refer to Drawer Not Drawn in Accordance with Cheque Card Criteria Signature Differs Not Drawn in Accordance with Cheque Card Criteria Payment Stopped Not Drawn in Accordance with Cheque Card Criteria Original Cheque Required where a photocopy has been presented Missing Cheque drawer refuses permission to debit Missing Cheque unable to obtain drawer s permission to debit Refer to Drawer Insufficient Fu
23. earing Debit Advice If the debit claim for Unpaid or Bacs debit has not been received within 3 working days after receipt of the Unpaid Cheque the returning bank financial institution must be contacted Current Account Switch Service Cheque Forwarding One of the key principles of the Industry Account Switch Scheme is that following the transfer of the account from the Old Bank OB to the New Bank NB any cheques drawn on the customers OB account will be presented to the NB for a pay no pay decision This process is manual due to the nature of cheque processing The redirection service will remain in place for 13 months after the account switch Any cheque presented to the OB after 13 months will be returned for the reason Account Closed Changes to the Cheque Clearing Scheme The Cheque Clearing Scheme has introduced a new element as part of the Cheque clearing process which will present cheques to the New Bank for a pay no pay decision Cheques which have been deposited in to the clearing scheme will be processed and presented to the Old Bank following existing processes However as the account has switched these will be returned unpaid to the collecting settlement bank using new return reason codes Account Switched or Account Switched Potential Stop These cheques will then be presented by the collecting settlement bank to the new bank using anew memo process and the New bank will need to make a
24. earings but the original cheque is not received you must first make a decision based on the codeline data as to whether the cheque would be returned for any reason suchas a stopped cheque or refer to drawer etc In these circumstances a claim for Unpaid must be issued even though the original cheque is missing Form number 11029 claim for unpaid manual claim should be used where you make claims through the debit clearing Form number 11030 advice of unpaid item should be used where you make claims via Bacs As you will not have the original cheque and therefore no crossing stamp details you will need to refer to the Sort Code column on the automated debit clearing listing and forward the Unpaid advice to the collecting bank default Sort Code where the first two digits of the Sort Code are listed Click here to view Collecting bank Sort Codes and locations In the event that this information Is not clear or there Is insufficient data you should telephone R amp A and provide them with full codeline details and DIN number which can be found on the automated debit clearing listing The helpdesk will check their records and will advise you as to where the unpaid cheque should be sent You can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed to a greater risk of loss should the unpaid be received late b
25. ebit Scheme Request for copy of AUDDIS Direct Debit Instruction Examples of stationery for special procedures 12385 Credit clearing adjustment BGC 12386 Credit clearing adjustment IBD 12387 Debit clearing adjustment IBD 12388 Debit clearing adjustment BGC Lost Cheque Remittance form CDB301 Examples of computer listings Credit Clearing Listing Automated Debit Clearing Listing Bureau Clearing Listing 22 of 23 For more information a g Visit lloydsbank com commercialbanking amp Contact your relationship manager Important information Lloyds Bank plc Registered Office 25 Gresham Street London EC2V 7HN Registered in England and Wales No 2065 Telephone 020 7626 1500 Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority Lloyds Bank International Limited P O Box 160 25 New Street St Helier Jersey JE4 8RG Registered in Jersey No 4029 Regulated by the Jersey Financial Services Commission to carry on deposit taking business under the Banking Business Jersey Law 1991 and investment and general insurance mediation business under the Financial Services Jersey Law 1998 Please contact us if you d like this information in an alternative format such as Braille large print or audio If you have a hearing or speech impairment you can use Text Relay previously Typetalk
26. ed through the clearing 12 Bankers Payment Managers Cheques 17 Direct Debit Processing the Credits All Bank Giro Credits being remitted must meet CPAS Standards for paper quality and layout and must be encoded with a minimum codeline of Sort Code amount and transaction code Ensure the front of all BGCs are clearly endorsed with your crossing stamp Be sure to microfilm your credits and check they are encoded with the relevant transaction codes as outlined below Transaction Codes for Credit Remittance 73 Consumer Credit and Mail Order Credit 74 Consumer Credit and Mail Order Credit Full Length Joint Giro Ti Own Account Personal Credit 78 Own Account Non Personal Credit 91 Joint Giro Credit short code line 98 Sundry Credit to include Manual Standing Order Credits Completing your Daily Credit Remittance Remove all pins staples sprocket holes and other attachments from bank giro credits BGC s as these are all causes of rejects and machinery breakdowns and could result in late clearance of the credits Place your crossing stamp on the front of each BGC Add List on a duplicate tally roll the BGC s taking a subtotal NOT a total after approximately 200 250 BGC s Please ensure that a duplicate tally roll is used as the bottom copy which should be clearly legible and must be retained for one year as an Audit Trail For each bundle of 200 250 BGC s include a Sub Total Voucher STV at
27. ems Paper Credit Clearing Listing Bureau Clearing Listing Agency Services Media Phone Customer Care Helpdesk on 01582 646123 01582 646124 01582 646125 General Paper Debit or Credit Clearing accounting enquiries including incorrectly listed items missing items and items not listed Lloyds Bank Plc Research amp Adjustment IPSL Blaise Pascal House 100 Pavilion Drive Brackmills Industrial Estate Northampton NN4 7YP Phone Research amp Adjustment on 0845 165 0414 Fax 01604 665050 665477 Phone STP Bureau Formerly Bureau Clearing Global Payments Reconciliations 5th Floor 2 Brindleyplace Birmingham B1 2AB 0121 625 5924 20 of 23 Cheque and Credit Slip Approval and Testing Bacs Enquiries R amp A Disputes Team IPSL Bulk Centralised Unpaids Phone Cheque and Credit Approval Group 0n 0151 210 4114 Cheque and Credit Approval Group IPSL 1st Floor Operations Bridle Road Bootle Merseyside L30 4AA Phone Bacs Unit as follows BACSTEL IP and BACS Referrals on 0870 9025210 Direct Debits amp Correspondence on 0870 9002066 Lloyds Bank Plc BACS Unit PO Box 72 Bailey Drive Gillingham Kent MES OLS Phone 01604 665474 Fax 01604 665421 R amp A Disputes Team Blaise Pascal House 100 Pavilion Drive Brackmills Industrial Estate Northampton NN4 7YP Phone 01582 646162 Fax 01582 646221 Bulk Centralised Upaids IPS 11A Northfeld Drive Northfield Milton Keynes MK15 0DQ
28. ere are two parts to the listing PRIME Contains all BGCs which have been processed successfully on the automated system REJECTS Contains BGCs which have been rejected i e it has not been possible to process them on the automated system Bureau Clearing The bureau clearing consists of automated direct debit and direct credit items which are passed to your agency sorting code These are routed through Bacs unless the sender of acredit or the beneficiary of a direct debit also banks with Lloyds Bank in which case an internal system is used This clearing Is given to you in the form of a computer listing Special Procedures Unpaid cheques Unpaids Outwards Unpaid Cheques should be returned on T 2 i e E 1 of the clearing cycle i e the day you receive them in your debit clearing day 0 being the day they were paid into the collecting bank You must write the reason for return in red ink on the top left corner of the cheque and send it to the collecting bank The unpaid cheque must be received by the collecting bank before 9 30am on the next business day Please note you can decide on the method of returning an Unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed to a greater risk of loss should an unpaid be received late by the collecting bank The banking industry has agreed wording of acceptable reasons for return and thes
29. esting bank Once fate has been advised In this way this is final and cannot subsequently be reversed Additionally you will need to develop a form for making your own Special Presentations Click here to view a sample of Lloyds Bank s form for making Special Presentations form number 11023 entitled Direct Remittance Stopped Cheques Stopped Cheques must be returned on day of presentation with an answer advised in full not abbreviated To accept a stop payment from a customer you must have a written request a telephone call can be accepted however it must be followed up by written confirmation Cheque Conversion Claim Beneficiary claiming non receipt of funds In the event that a customer contacts you advising that their account has been debited in respect of a cheque for which the beneficiary is claiming non receipt of funds you should contact R amp A requesting that they puta trace on the item To enable R amp A to investigate they will require a clear photocopy front and back of the cheque with details of where the cheque was listed in your debit clearings including the date and total of the clearings R amp A will contact the collecting bank to establish if the correct beneficiary has been credited with the proceeds If the collecting bank advises they have credited the wrong account In error they should pass correcting entries and advise R amp A of their actions R amp A will advise you once they rece
30. he event that this information is not clear or there Is insufficient data you should telephone R amp A and provide them with full details of the cheque and DIN number which can be found on the automated debit clearing listing R amp A will check their records and will advise you as to where the unpaid cheque should be sent Please remember to look on the back of the returned cheque to see if arear endorsement has been used which will enable you to ascertain the collecting bank Sort Code and thus return the cheque via normal procedures The reason for dishonour must be annotated IN FULL in red ink on the top left portion of the cheque Form number 11029 claim for unpaid manual claim should be used where you make claims through the debit clearing Form number 11030 advice of unpaid item Bacs should be used where you make claims via Bacs You can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed toa greater risk of loss should the unpaid be received late by the collecting bank Please note the unpaid cheque must be received by the collecting banks default Sort Code before 9 30am on the next business day Missing Cheques to be returned Unpaid Missing cheques to be returned for the reason refer to drawer or payment stopped etc If a cheque drawn on one of your customers is listed in your debit cl
31. here the unpaid cheque should be sent You can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed toa greater risk of loss should the unpaid be received late by the collecting bank Please note the advice of unpaid must be received by the collecting bank default Sort Code before 9 30am on the next business day Non standard paper The use of non standard paper i e cheques which have not been printed by an accredited printer require more manual intervention It is therefore inevitable that there will be increased numbers of cheques of this type that go missing in the clearing system You are therefore encouraged to Issue your customers with cheque books which have been printed by an accredited printer who is amember of CPAS If the missing cheque has been issued on non standard paper the debit clearing listing will not include any code line data In this event you should contact R amp A Helpdesk and provide them with the appropriate DIN number listed on the debit clearing listing which relates to the missing cheque R amp A will provide you with the DCV total fixing and the collecting bank default Sort Code which should all be included when completing a claim for missing unpaid advice of missing Unpaid item copy acceptable not acceptable Ifan ISN number is quoted on the debit clearing lis
32. hs However if an item has been encoded or listed incorrectly an adjustment can be made up to 6 years after the date of remittance It is very rare for this to happen as customer would usually notify their bank if a cheque they have issued has been debited for the wrong amount Adjustments to clearing differences will be made to your Sterling bank account under advice Error identified and proven Pass acorrecting entry to your nominated Sterling bank account You will need to supply full details of the error Error suspected but not proven Obtain a computer print out of all cheques credits processed within your remittance from R amp A This print out may then be checked back to your add listing in order to identify the error Cheque s Credit s listed within a remittance but not included in the remittance Ifa cheque credit is found in your office which should have been included in a previous remittance please contact R amp A for guidance on how where to forward the item see Entry B Chapter 3 Items forwarded in this way may be subject to a delay in clearance B Differences identified by iPSL Missing Cheque s Credit s not received by iPSL Ifa cheque credit is listed in your remittance but not received by iPSL you will be advised of the missing item and your account will be debited credited with the value of the missing cheque credit f payment is required against a photocopy of the item or code
33. ive confirmation that correcting entries have been passed by the collecting bank If it transpires the cheque is a potential cheque conversion you will need to contact the collecting banks branch direct in writing stating that you believe the item which was deposited at their branch counters has been converted and you require immediate reimbursement of funds Clear copies front and back of the paid cheque should accompany the claim to the collecting bank Returning Direct Debits Ifa direct debit needs to be returned you will need to generate an Automated Return of Unpaid Direct Debit ARUDD via the Bacs Payment Services website For detailed information on the procedures that need to be followed please refer to the following Bacs User Guides Services Member and Agency Guide Payment Bank Guide and Rules to the Direct Debit Scheme Please note to obtain access to the Bacs reference user guides please click here 17 of 23 Clearing Adjustments Debits and Credits No Clearings or Wrong Clearings received If you receive the morning work of another agency customer or do not receive any work at all please contact Customer Care Helpdesk immediately Clearing Adjustments Care Missing cheques must be processed using the Sight of Paper Required SOPR process Ifa cheque bank giro credit is not listed wrongly listed encoded you will need to complete a clearing adjustment form Remember to use
34. line details please complete a Lost Cheque Remittance Form and send it to R amp A R amp A will then endeavour to clear the item with the paying bank You must also consider debiting the beneficiary whilst R amp A are attempting to obtain payment against the photocopy codeline details to suspend the 2 4 6 customer proposition This is because despite the provision of a photocopy code line details the paying bank branch may refuse payment for a number of reasons i e refer to drawer payment countermanded by order of drawer etc 8 of 23 Please note Unpaid cheques cannot be debited back to your customers account after close of business T 6 therefore failure to debit your customer in respect of the missing cheque may result in aloss to you if the paying bank branch refuses payment against a photocopy or codeline details of the cheque R amp A will advise you if this action is unsuccessful If payment has not been obtained we suggest that you contact the beneficiary and advise them to obtain a duplicate cheque from the drawer or arrange for payment to be made by alternative means If payment has been obtained the paying bank will either remit the Bank Giro Credit through the clearing or alternatively arrange to pass a credit to your account by an alternative method Cheque s credit s remitted by yourself but not listed within aremittance You may be required to identify where and when a cheque credit was listed within a remitta
35. nce If the cheque credit cannot be Identified as listed in a previous remittance a credit debit will be passed to your Lloyds Bank Sterling account Cheque s credit s incorrectly listed R amp A will notify you of the wrongly listed cheque credit and a correcting entry will be passed to your Lloyds Bank Sterling account in settlement Non clearing items Should you include an item that is not eligible to be remitted through the UK Clearing System the value of the item will be debited credited to your Lloyds Bank Sterling account under advice Additionally the item will be returned to you for action by your bank financial institution Reconciliation You will need to reconcile any account entries so that any cheques delivered through a bulk scheme on T have been credited to your Sterling account on T 2 If the entries do not reconcile on T 3 you should urgently contact R amp A for advice as potentially the clearings may have been delayed Missing Clearing Bags If after contacting R amp A it is established that the bulk clearing did not arrive at iPSL then an Investigation will be undertaken In conjunction with the courier In the event that the bag can still not be located you will have to consider debiting your customer in order to suspend the 2 4 6 proposition If after contacting Customer Care Helpdesk it is established that the bulk clearing still cannot be located you should escalate this incident direct with Llo
36. nds used by banks in Scotland Refer to Drawer Insufficient Funds Please Represent used by banks in Scotland Advice of Drawing Required Please Represent Member internal use Member internal use Sight of Paper Required SOPR Member internal use Prevented Drawer s Bank in insolvency or administration procedure Account Switched Account Switched Potential Stop Sight of Paper Required SOPR is a returned cheque reason that can be invoked in certain circumstances when a cheque is delayed or goes missing in the clearing process in order to ensure that the paying banks position can be protected and the 2 4 6 proposition can be complied with The destination of the collecting bank should be taken from the crossing stamp referring to the Sort Code Directory ISCD as necessary Cheques being returned unpaid should always be returned on the date of receipt i e the day they are listed in your debit clearing Legal Orders In the event that a Legal Order has been signed and as a result it becomes necessary to unpay an item that had already been paid it willbe possible to return an item up to 24 hours after the specified deadline In this instance Return Reason 09 Payment Prohibited by Legal Order must be used and the Collecting Bank must be telephoned as soon as possible to inform them of the situation Take the first and last name of the person at the Collecting Bank to whom you give the notifi
37. p cheques these items should not be printed with details of a Clearing Bank Cheques issued payable abroad or drawn in a foreign currency Postal and money orders Bills of Exchange Tax vouchers National Savings Banking form B6 There are no staples pins or attachments on the cheques credits No cheques credits are upside down back to front or folded in half Ensure the crossing stamp has been endorsed onto the face of each cheque credit and is legible If the crossing stamp cannot be read any cheque that has to be returned unpaid may be subject to delay The remittances are correctly presented in accordance with the Bulk Cheque and Credit Random Checklists Errors If an error has been made in the listing of cheque credits On both the top and bottom copies of the listing the incorrect amount should be underlined in red and the correct amount Indicated to one side Deduct the incorrect amount from the listing and then add the correct amount Please take great care to ensure that alterations are correctly made and followed through to all lists and totals Ifa summary form 46R or 39R is incorrectly completed destroy the form s and complete anew one Remittance Differences For full contact details of Research amp Adjustment refer to entry B in chapter 3 A Differences discovered by yourselves Please note A difference of aremittance will only be investigated within 12 mont
38. roughout this manual we have made references to the need to consider debiting your customer and in some instances we have asked you to contact us for advice This advice may be to suspend the 2 4 6 proposition to protect both yourself and Lloyds Bank as your settlement bank but if you decide not to do so e g for customer experience reasons any liability for losses will rest with you 5 of 23 Chapter 1 Remitting work to Lloyds Bank outclearing This chapter includes most of the day to day routines and assist in overcoming problems that may be encountered with encoding and remitting work It is important to correctly present your remittances as the cheques and credits are automatically read and sorted using high speed machinery Stationery Cheques and Credits All cheques and credits passed through the Inter Bank clearing must be printed by an accredited printer that is amember of the Cheque Printer Accreditation Scheme CPAS This scheme was introduced with the aim of tackling fraud involving company cheques Members of CPAS have stringent standards to meet the requirements for security paper quality and layout To ensure that your items meet this standard or if you require approval for new stationery please contact the Cheque and Credit Approval Group You will appreciate that disruptions to our automated system can be very time consuming and could result in delayed clearance of your remittances NOTE If yo
39. t front and back to R amp A If the credit is payable to another bank financial institution forward the BGC to R amp A with a brief note detailing when and how it was received Retain a photocopy of the item with the day s work Bank Giro Credit s listed incorrectly Credit the correct value to the beneficiary account and submit a correcting Clearing Adjustment Form either 12385 or 12386 depending on whether you require a debit or credit to be passed to your account with full details of the adjustment A clear photocopy of the offending item front and back with a copy of the Credit Clearing listing should be stapled to the top portion of the form Before despatch fax a copy of the clearing adjustment form bank giro credit front and back and a copy of the listing to R amp A Items that cannot be applied Contact the remitting bank financial institution requesting further details If the remitter s endorsement is illegible or missing write to R amp A requesting this information R amp A will require the work date total value of the clearing and amounts of the two BGCs either side of the unapplied BGC on your listing Listed to you in error Please forward the item to the correct destination witha covering letter and payment Retain a photocopy of the item with the day s work Clearing Adjustments Bureau Unpaid Unapplied Direct Debits Ifa direct debit needs to be returned you will need to generat
40. t a duplicate tally roll is used as the bottom copy which should be clearly legible and must be retained for one year as an Audit Trail For each bundle of 200 250 cheques include a Sub Total Voucher STV at the back of the bundle When you get to the end of the final cheque bundle total the add listing please do not include a STV at the back of the final cheque bundle Impress the Random Remittance Rubber Stamp below the total on the listing complete the relevant details within the area left by the stamp impression Complete a BGC with the total number of cheques the date and the total value of the cheques Complete a Batch Ticket with today s date Please note Where the number of cheques exceeds 2 500 they should be separated into batches of 2 500 maximum with a separate BGC and Batch ticket for each Complete the summary voucher 46R with the date and total cheque value Bundle the entire remittance in the correct order with all vouchers present in accordance with the Bulk Cheque Preparation aide memoire Complete ared polylope with the date and your remitting details Place all items in the red polylope and securely seal the polylope Full code line data must be retained either by microfilming your work or using another acceptable method which is available on the market Transaction Codes for Debits A full list can be obtained from your Relationship Manager 10 Cheque item must be present
41. t should not be relied upon as the primary source of that information Always use the details contained in the crossing stamp on the front of the cheque if it is present DIN an identifying number placed on the back of the cheque as part of the Inclearing process Items of 1 000 and over are marked with an beside the account number and there are totals at the bottom of each page for cheques under 1 000 and 1 000 This may be useful if your internal procedures require use of further routines for higher value cheques e g for security purposes There are three parts to the listing Part 1 Contains all cheques which have been processed by the automated systems in Clearings Part 1 may also contain some cheques which have NOT been debited to your account These are called over cheques and have been received from the collecting bank without their accompanying clearing data Over cheques are not included in any totals and are identifiable by Your In Clearing may consist of cheques credits bureau clearing listings along with the relevant debit and credit clearings computer listings a blank ISN column xxxxxx in the Sort CD column AND a blank amount field Part 2 Individual cheques which in some instances may be either listed but not received i e missing cheques or delivered loose in the bag or free items Part 3 Contains cheques which have been rejected i e
42. tification Upon receipt of the fax notification you should immediately pass a debit to the beneficiary s account BCU will submit a manual claim for unpaid to your agency Sort Code through the Automated Debit Clearing paper clearing and return the original cheque to you Timescales can be delayed if the crossing stamp on the item is unclear or omitted Cheques which have been paid in over Lloyds Bank Counters will be returned by the paying bank direct to Lloyds Bank Centralised Returns Inwards Unit CRI CRI will fax a copy of the unpaid cheque and telephone you to confirm receipt of the fax notification Upon receipt of the fax notification you should immediately pass a debit to the beneficiary s account A debit will be passed to your account and the original cheque will be returned to you NOTE If the beneficiary account of the cheque returned to you is held by another bank financial institution then telephone advice of the return must be given to that bank as early as possible to enable a debit to be passed to the beneficiary s account within the timescales to suspend the 2 4 6 proposition Request the name of the recipient of the call and record it in case of future discrepancy Return the cheque to the account holding bank and pass a manual Claim for Unpaid if you make claims through the debit clearing or Advice of Unpaid Bacs if you make claims via Bacs to the appropriate Sort Code The addition
43. ting this should also be included when completing a claim for missing unpaid advice of missing unpaid item copy acceptable not acceptable Please note the advice of unpaid must be received by the collecting bank default Sort Code before 9 30am on the next business day You can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed toa greater risk of loss should the unpaid be received late by the collecting bank Sight of Paper Required Not Prepared to pay Against a Copy If you are not prepared to debit your customer against a copy of the cheque please ensure the copy not acceptable box is crossed when Issuing the claim for missing unpaid advice of missing unpaid form The collecting bank will upon receipt treat this notification as a final answer debit their customer and send an advice to the beneficiary that the cheque has not been paid The beneficiary will then need to contact the drawer to obtain payment No action should be taken if the original cheque turns Up at a later date Reversal of SOPR Decision A Sight of Paper Required return decision cannot be reversed Under any circumstances even if the original cheque turns up at a later date This is because the collecting bank may decide not to pursue the option of trying to obtain payment against a photocopy of the cheque and there will be no
44. u have queries regarding your remittance please telephone iPSL Customer Care Helpdesk available Monday to Friday from 8am to 5pm The following stationery items will be used in completing your remittance Control Vouchers Batch Tickets Sub total vouchers Remittance Docket Summary and Control Voucher Credit Remittance Summary Please mark all Vouchers with details of your company bank title Miscellaneous Random Remittance Rubber Stamp Branch Crossing Stamp Stationery Orders Customers are automatically supplied with an initial stock of stationery for further supplies please email Corp BulkStationery lloydsbanking com 6 of 23 Daily Routines Processing the Cheques and Completing Your Daily Debit Remittance All cheques which are processed must meet CPAS standards for paper quality and must be encoded with FULL Code line details including transaction code see below Please check the payee s name is stated on the cheque and is the same as the customer s name on the account to which the cheque is being credited Remove all pins staples sprocket holes and other attachments from cheques as these are all causes of rejects and machinery breakdowns and could result in late clearance of the cheque s Place your crossing stamp on the front of each cheque Add List on a duplicate tally roll all cheques taking a subtotal NOT a total after approximately 200 250 cheques Please ensure tha
45. uctions by T 13 in order to allow us sufficient time to undertake the investigation A claim can only be made if the Paying Bank has been put on notice Inward Unpaid Cheques Received after T 6 Upon receipt of an unpaid cheque advice fax from us you must check that the return has been advised to you before the close of business on T 6 If the unpaid is outside these timescales you cannot pass the debit to your customer s account without their permission You should immediately telephone the R amp A Disputes Team with the cheque details together with confirmation of T Please also confirm this telephone call by faxing notification to 0845 300 2580 They will then investigate to ascertain where the delay has occurred and liaise with the Paying Bank on your behalf Non Receipt of Unpaid Cheques Ifa debit claim for Unpaid or a Bacs debit is received for which you have not received a corresponding unpaid cheque you will need to contact the originator of the debit immediately They will supply you with information which should enable you to debit the payee for the amount unpaid 15 of 23 If you do not subsequently receive the cheque the debit should be passed to the beneficiary s account and a duplicate cheque obtained If you are unable to apply a Manual Claim for Unpaid from the information given you should refer back to the originator but the Manual Claim for Unpaid should not itself be returned unpaid Non Receipt of Cl
46. ue form where you know that a cheque will not be paid for example where the cheque has been stopped or there are insufficient funds to debit the drawer s account In these circumstances claim for Unpaid forms must be issued even though the original cheques are missing in accordance with the procedures detailed under the Unpaid Cheques headings Missing cheques to be returned for the reason refer to drawer or payment stopped etc Missing cheques to be returned for the reason Sight of Paper Required Nonstandard paper You can decide on the method of returning an unpaid cheque i e guaranteed next day delivery private courier etc however if you elect to use 1st class post you may be exposed toa greater risk of loss should the unpaid be received late by the collecting bank Please note the advice of unpaid must be received by the collecting bank default Sort Code before 9 30am on the next business day Please note The use of threshold limits will be particularly relevant when a large number of cheques or an entire clearing is not delivered to you for whatever reason In these exceptional circumstances you may decide to return cheques one day late as the collecting bank can debit their customer up to close of business T 6 However in the event that the collecting bank is unable to debit their customer or the funds become unrecoverable the liability will remain with you Before issuing a large number or S
47. ustrial Estate Northampton NN4 7YP Once R amp A receive your form they will work the case process the adjustment and send the BGC IBD in the appropriate clearing to your Sort Code and account number Please note that a clearing adjustment form can only be used for clearing adjustments and NOT for missing cheques Care Missing cheques must be processed using the Sight of Paper Required SOPR process Please note It is important that you use the correct form for adjustments All differences errors problems etc must be dealt with on an immediate Urgent basis as delays can adversely affect your success of achieving reimbursement of funds reconciliation and agreement of your clearings Debit Clearing Adjustments Mis sorted Items Drawn on another bank financial institution Listed on the Automated Debit Clearing Listing Please refer to Wrongly Delivered Items which have been listed and charged Not listed on the automated debit clearing listing Please refer to Wrongly Delivered Items which have not been listed and charged Errors in Automated Debit Clearing Cheque incorrectly listed You should debit the customer s account with the correct amount and complete a Clearing Adjustment form either 12387 or 12388 depending on whether you require a debit or credit to be passed to your account with full details of the adjustment A clear photocopy of both sides of the offending item should be stapled
48. with you and is committed to helping ensure the successful operation of your Agency banking Best regards Global Transaction Banking Commercial Banking 4 of 23 The 2 4 6 and 2 6 6 changes Following a report published in 2007 by the Office of Fair Trading Payments Systems Task Force all banks that provide cheque clearing services in the UK have had to change the way in which they handle cheques Paying Bank Under this industry initiative various changes have been adopted by all banks to ensure that maximum timescales have been set for all component parts of the cheque clearing cycle The components have been broken down into the paying in day plus 2 4 or 6 working days i e 2 4 6 Collecting Bank Cheque processed Cheque cleared for value or cheque returned unpaid E 1 Unpaid received amp processed E 2 Cheque cleared for fate Any cheques delayed during clearing and which are unpaid must be debited to the beneficiary by the collecting bank by Day 7 T 6 Failure to do so will lead to an operational loss which will be incurred by the paying or collecting bank Collecting Bank Day 0 Mon Cheque deposited Day 1 Tues Cheque processed Day 2 Weds Day 3 Thurs Day 4 Fri Day 7 Tues depending on where the delay has arisen Notes 1 value means the provision of credit interest or the reduction on payable debit interest 2 fate means the cheque is assumed cleared and th
49. y the collecting bank Please note the advice of unpaid must be received by the collecting bank default Sort Code before 9 30am on the next business day Missing cheques to be returned for the reason Sight of Paper Required If having decided that the cheque would not be returned for any reason and you are not in a position to pay the cheque without sight of the original cheque you can return the cheque Sight of Paper Required In these circumstances a claim for missing unpaid copy acceptable not acceptable only must be issued even though the original cheque Is missing Form number 12363 claim for missing unpaid manual claim should be used where you make claims through the debit clearing Form number 12364 advice of missing unpaid item copy acceptable not acceptable should be used where you make claims via Bacs When completing the claim for missing unpaid advice of missing unpaid item copy acceptable not acceptable you should indicate as to whether you will consider paying the cheque against a copy please note this is not confirmation that the copy of the cheque will be paid A separate advice must be used for each unpaid item and the following detail must be included Date of advice which should be the date the decision is made to return the item unpaid i e the date the cheque is listed in your debit clearing Drawee Paying Bank or branch sorting code number which will be the address an
50. yds Bank Financial Institutions by email at ficlientservices lloydsbanking com advising them of the number of cheques that were Included in the remittance and the total value of the clearings They will liaise direct with iPSL on your behalf to agree the most suitable course of action to resolve the issue Financial Institutions will contact you to advise the procedures that have been agreed and to discuss the next steps 9 of 23 Chapter 2 Processing your In Clearing This chapter outlines the procedures which should be followed when processing work which Lloyds Bank receives through the Inter Bank Clearing on your behalf Each day you will either collect your morning work from a local Lloyds Bank branch or have it delivered to you In a designated polylope Routine Procedures Debit Clearing Paying Cheques Automated Debit Clearing Listing You will receive an Automated Debit Clearing Listing ADC each working day together with the cheques contained on it In addition to the Cheque Number Account Number and Amount the ADC also shows the following information ISN the identifying number placed on the back of the cheque by the collecting bank There will be no ISN present on cheques collected by Lloyds Bank Sort CD the Sort Code of the collecting bank and will be blank if the cheque was collected by Lloyds Bank NOTE The information in these two fields can be useful if you need to identify the remitting bank bu
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