talkmagic.co.uk

As a fair amount of trading takes place on TM I wondered if members were aware of the new postal orders that are being introduced? Note the end regarding expiry dates for old style postal orders if you have any that are not cashed!

From April 2006 postal orders issued by the Post Office will be changing. They have been significantly redesigned and will now appear similar to cheques and will be processed in the same way. The changes will be piloted in a small number of post offices from 10 April 2006 and then implemented across the country from 27 April 2006. The Post Office currently issue 28 million postal orders a year.

Postal orders will now be available for up to £250. When customers purchase them from the Post Office they will also be given the option of having the payee's name printed on the postal order.

The exact amount the postal order is for will usually be printed on the document (there will be a small number of exceptions where the amount will be handwritten but these will be for a maximum of £9.99).

Postal orders will be processed through the clearing system as cheques. Like cheques, they may be returned as unpaid under certain circumstances. Postal orders will be returned unpaid within the same timescales as for returning unpaid cheques.

New style postal orders are to be treated as cheques for clearance purposes. From 10 April 2006 they should, therefore, be treated in exactly the same manner as cheques. This means that funds deposited into a savings account by postal order will not be available for withdrawal until 7 calendar days (excluding bank holidays) have elapsed. Similarly, they will only accrue interest from the third working day.

Postal orders are valid for six months from date of issue. All old style postal orders will, therefore, have expired by 27 October 2006. Expired postal orders will not be acceptable.