The Loughborough is welcoming an initiative to slash the opportunity for fraud against bank and building society customers.
From October 2006 cheques for personal accounts made out solely to an institution are likely to be declined in certain circumstances when the name of the person who holds the account will also be required in the payee line.
Stephen Peete, chief executive of Loughborough, says: “This is an important initiative but it’s crucial we educate customers about the changes. At present, customers can overlook the dangers of simply making a cheque payable to their bank or building society because if the cheque is lost or stolen it can be paid into any account with that institution.”
Peete says that currently if a cheque is handed to a third party there is no guarantee that the third party will pay the cheque into the correct account.
He adds: “Adding the payee’s name to the cheque is a sensible precaution to take. The Loughborough has already changed its terms and conditions to reflect this measure and we will be reminding customers over the next 10 months to ‘check your cheques’.”