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Cheque Return Authority Letter for the United Kingdom

Cheque Return Authority Letter Template for England and Wales

A Cheque Return Authority Letter is a formal document used in England and Wales that authorizes a bank to return specific cheques or all cheques presented against an account. The document complies with UK banking regulations, including the Bills of Exchange Act 1882 and the Cheques Act 1957, and provides clear instructions to the bank regarding the handling and return of cheques. It serves as a legal record of the account holder's instructions and protects both the bank and the account holder in the cheque return process.

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What is a Cheque Return Authority Letter?

The Cheque Return Authority Letter is commonly used when an account holder needs to establish formal instructions for their bank regarding the return of cheques. This document becomes necessary in various situations, such as when an account is being closed, when payment has been stopped on specific cheques, or when there are changes in payment arrangements. Under English and Welsh law, this letter provides legal protection for both the bank and the account holder, ensuring clear communication of instructions and compliance with banking regulations. The letter typically includes account details, specific instructions for cheque returns, and the duration of the authority.

What sections should be included in a Cheque Return Authority Letter?

1. Bank Details: Full name and address of the bank branch

2. Account Holder Details: Full name, address, and account number of the account holder

3. Authorization Statement: Clear statement authorizing the return of cheques

4. Specific Instructions: Details of how and when cheques should be returned

5. Duration: Period for which the authority remains valid

What sections are optional to include in a Cheque Return Authority Letter?

1. Specific Cheque Details: Details of specific cheques to be returned, used when authority is for particular cheques only

2. Alternative Contact: Details of alternative contact person, used when account holder delegates authority

3. Special Handling Instructions: Any special requirements for handling returned cheques, used when specific procedures are needed

What schedules should be included in a Cheque Return Authority Letter?

1. List of Specific Cheques: Detailed list of cheques to be returned including cheque numbers and amounts, if applicable

2. Verification Documents: Copies of ID or other verification documents if required by bank policy

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Letter of Authority

Sector

Banking

Cost

Free to use
Relevant legal definitions














Clauses














Industries

Bills of Exchange Act 1882: Primary legislation governing cheques in the UK, defining their legal status as bills of exchange and setting out rights and obligations of involved parties

Cheques Act 1957: Specific legislation dealing with cheques, including provisions for crossed cheques and banker's liability

Banking Act 2009: Modern banking regulations and payment systems regulations framework

Payment Services Regulations 2017: Regulations governing payment services including cheque processing, implementing EU Payment Services Directive (remains relevant post-Brexit)

Data Protection Act 2018 and UK GDPR: Legislation governing the handling of personal information, including requirements for data processing and storage

Financial Services and Markets Act 2000: General regulatory framework for financial services, relevant for bank operations

Consumer Rights Act 2015: Legislation protecting consumer rights in banking relationships and ensuring fairness of terms

Teams

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