Usually when computers report incorrect information it is almost always due to human error.
Bank managers have a lot of flexibility in agreeing terms with customers. We see the overall picture because we audit accounts held by all the banks. We see wide variations in terms of business between customers with no apparent explanation. Banks now recommend business customers to seek independant advice
We go through a lot of painstaking detail to arrive at our conclusions. The more complicated the banking procedures the more scope there is for error.
True, some investigations turn up undercharges but we find discrepencies in every investigation we carry out.
Producing a detailed report is a specialised job and requires computer programs to check the banks calculations.
Banks charge interest on the cleared daily balances, which are different from the balances shown on the statements.
Cheques paid in at the home branch appear on the statement on the date they are paid in but are "not cleared for value" until the third working day afterwards and "not cleared for fate" until the fourth working day.
Working days do not include weekends and bank holidays although interest is still charged on these days. Cheques paid in at any bank other than the home branch take the same time to clear as they enter the clearing mechanism immediately.
Most overdrafts are charged interest at an agreed percentage over base rate. This goes up or down from time to time. Sometimes the bank imposes a minimum artificial base rate as a condition of the facility. Groups of companies and companies with several accounts usually have an arrangement with the bank that they only pay interest on the net cleared daily balance. This is the sum of all the overdrawn balances on each account less the sum of the credit balances. Hard Core borrowing clauses and Tiered Interest Rates complicate the problem even further. Severe penal interest rates, as well as fixed penalties, are applied if the borrower exceeds the agreed overdraft limit. Bank errors can result in these punitive rates kicking in prematurely, with disastrous results.
Taking account of all the factors is almost impossible and could take months, unless you have the right computer programs.
Bank Charges - Bank Audits - Bank Overcharge - Business Banking - Bank Charge Auditing
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