Up to 6 million people in the UK will use cheque cashing services like CASH RECYCLE, cashing an estimated £6.5 billion worth of cheques. They do so for a variety of reasons but these mainly fall into two categories. They haven't a bank account or they want the cheque cashed on the spot.
Some 7% of the adult population have no bank or building society account. It was to provide a service to these people that CASH RECYCLE started cashing cheques.
It quickly became apparent that many people with a bank or building society account were also using our service. They want their cheques cashed on the spot. With hindsight it is obvious there would be a big demand for this service. The banks charge around £12 to special clear a cheque which takes at least one day and often two. At the end of that time all that has been achieved is a guarantee that the cheque will be honoured. The payment isn't speeded up at all. The bank customer is no better off, has made two journeys in person to the bank and still hasn't got the cash!
It is this part of our service, cashing regular pay cheques quickly and professionally that endears us to our regular customer and allows us to build an expanding business.
Cheque Act 1992:
The Cheque Act of 1992 was introduced to combat cheque fraud. By making cheques only payable though the Payees bank account the Act largely succeeded. In particular it significantly reduced cheques being stolen and then cashed by the thief, or the thief's accomplice.
But it also prevented millions of people who didn't have a bank account from cashing their cheques.
It was never the legislators intention that these people should be socially excluded in this way. So provisions were made for responsible and well run businesses like CASH RECYCLE to provide a cheque cashing facility for people without a bank account.