Legislation to support cheque imaging

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.