Current accounts

This is perhaps the most common and the most popular account. It is from this account that most services are available and other accounts may be obtained. The customer may pay in any funds he wishes, whether it is in cash form, cheques, dividend or interest warrants, drafts from govern­ment departments or, indeed, any other recognized negoti­able instrument. The customer may also withdraw funds without formality on demand, usually by drawing a cheque, payable to himself or 'cash' and withdrawing funds from over the bank counter or by the use of a cash dispenser card.

When a person, corporate or not, opens a current account-assuming funds have been cleared and references are satisfactory - he is given free of charge a cheque book, paying-in book, and, at the manager's discretion, a cheque card. Additionally, a statement is sent by the bank to the customer at regular intervals, at least twice a year, free of charge. Most customers who use their current account regularly will request a monthly statement.

Currently, banks will operate a current account free of charge providing it is in credit - that is there is an amount of cleared funds on the account. Any overdraft or payment of cheques against funds which have not finally been cleared will be penalized by a charge against the account. The amount of the debit against the customer's account will depend on (1) the number of items passed during the period, (2) the amount overdrawn and (3) current interest rates.

Before leaving current accounts, a word must be mentioned about statements. Banks must take extreme care before despatching statements since any error, either debit or credit, can involve the bank in a loss. For example, any debit unauthorized by the customer cannot be debited to his account. A cheque bearing a forged signature can never be debited. A cancelled standing order, debited in error, must be refunded. A credit passed in error to a customer's account could also mean a loss to the bank, especially when that customer has in good faith and quite innocently spent the money. In the case of Lloyds Bank Ltd v. Brooks (1950), Lady Brooks was credited with a series of dividend warrants to which she was not entitled. The bank attempted to recover these funds, but as she acted in good faith and relied upon the balance, she won the case. It is therefore vital for bank staff to ensure that the entries on a statement are correct before a statement is sent out. The statement should be sent to the correct address; otherwise, if the envelope is opened by a stranger, there could be a breach of secrecy.

Дата добавления: 2014-12-29