18 September, AtoZForex.com, Lagos – Regulators have shown concerns over the misleading claims of WeRe Bank. The self acclaimed bank is a UK-based venture, one of its biggest focus is to be a community bank and it appears to have created it's own currency, the RE.
A core requisite for members of the RE-movement is issuance of a promissory notes. As defined by the Financial Conduct Authority, a promissory note is an authorized document in which there is a written agreement by one party consenting to pay a sum of money to the other party. Under this arrangement, once such notes are issued to WeRe Bank to the tune of £150,000 with a time frame of 10 years to pay off, before members can be granted the right to purchase RE cheque books.
The WeRe bank warning stems from FCA's discovery of the institution's claims on its cheques grant access to pay all public liabilities. Such as utility payments, tax, council tax as well as private payments between consenting parties (including mortgages). The WeRe Bank claims via its site that according to section 42 and 43 of the Bills of Exchange Act 1882, if payee refuses payment, then the payee has acted in dishonour and the liability for the payment ceases.
FCA sees no ground to authorize
The institution refers to itself as a bank, but the Financial conduct authority (FCA) sees no ground to authorize its activities because providing advice on regulated investment and accepting of deposits are activities FCA regulates. FCA is concerned that clients may be misled and attracted to WeRe Bank's claims of the ability to use RE cheque book to pay off debts without paying money into the account of the recipient.
The interbank payment system in England, Scotland and Wales that processes cheques and other paper instruments is cheque & credit (C&C). The C&C payment system is operated by the C&CCCL (cheque and credit clearing company Ltd). Further complicating the WeRe Bank's claim is the C&CCCL affirmation that cheques are not legal tender and has never been. This indicates that no one is obliged to accept cheques as a means of payment, thereby leaving the creditor with the sole right to accept the legal tender as a means of payment and perhaps other means of payment without compulsion.
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