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The government is announcing its response to the consultation on two measures to support the introduction of the Image Clearing System (ICS) for cheques. The aim of this legislation is to ensure that the ICS, which will clear all cheques by October 2018, has no detrimental impact on the existing position of cheque users.
The consultation received fifteen responses, and the government engaged with four other institutions. On the first measure of using cheques as evidence of payment, all respondents agreed that a copy of a cheque should be made available to customers on request. On the second measure concerning compensation, the majority of responses favoured the government’s objective that no user of cheques should be left out of pocket as a result of a loss incurred in connection with the new ICS.
Government is consulting on legislation for two measures to support the introduction of the Image Clearing System (ICS) for cheques.
The first concerns the use of cheques as evidence of payment. The proposed legislation will ensure that customers can receive a copy of their cheque to use as evidence of payment under ICS, in place of the original cheque under the old system.
The second concerns compensation. Government is consulting on legislation as a back stop to ensure that customers are compensated in the event that they incur a loss in connection with ICS.