# General Business Category > Business Finance Forum >  Uncleared effects

## Peace

I noticed the thread on bank interest; 
I was advised by our service manager (Nedbank), of the form to be signed for uncleared effects. As we've had this account for over 22 years, I queried why should we be signing forms, when we've been with you for years. His reply, Nedbank had been fighting a case in court over uncleared effects. Nedbank lost 1M in that, this prompted them to get their paperwork in order.
As majority of our customers EFT, some do send cheques. 
Now with most business accounts not earning interest, current a/c's are left with bare min, balance transferred to interest earning a/c. 
My thoughts: e.g. OD 1M, balance 200,000.00, uncleared effects 199,000.00. Now maybe wages need to be paid R4000.00 - doesn't that imply one's using the OD. Therefore interest could be charged on OD? 
Nedbank say this uncleared effects will be sorted, but management have to make the final decision.
Am I losing the plot on this?

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## Dave A

Surely interest is calculated on the *shown* balance rather than the *cleared* balance?

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## Sieg

I am curious about this court case that Nedbank lost about "uncleared effects". That bank manager didn't possibly give you more details? Name and reference of case?

Sieg

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## Peace

Unfortunately, I wasn't told much more..
The case occurred in Jhburg, sounded like it was fairly recent (last few months). It was a case of the client sued nedbank for releasing uncleared effects. He stated, he never gave Nedbank permission to unclear effects.

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## Dave A

> It was a case of the client sued nedbank for releasing uncleared effects.


I'm wondering how a client would "suffer damages" as a result of this?
The whole issue of accessing "uncleared effects" only becomes a problem when the deposit bounces is returned unpaid...

A discussion about exactly what should constitute uncleared effects in this modern era could be interesting too. For local transactions you know within 48 hours maximum if the problem is insufficient funds. After that you start heading into the territory of disputed transactions and fraud, which is a slightly different problem and imho deserves to be seperated from uncleared effects as an issue.

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## Peace

I do remember in the 'good old days', when RD chqs would be returned almost immediately. Now, I've had a couple of chqs being returned almost 2 weeks later.
What about forex chqs; the bank loses the chq! Actually, over the years I've had local chqs been lost by banks. So, re-issue by the customer, if it's a 30 day a/c and discount is allowed, yip, you've guessed it... thanks to the banks efficiency.. (sorry this is sarcastic).. but I do find the banks are wholly business orientated, a lack of concern for their clients businesses.  OK now that I got that off my chest!
uncleared effects; I banked a chq from FNB (I closed a business call a/c) to ABSA, it was uncleared for 7 working days!!! a bank chq? Does this mean banks don't trust banks?

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