HM Treasury News Release
163/97                                       17 December 1997
__________________________________________________________________

            RAISING STANDARDS IN EC CREDIT TRANSFERS

British tourists, out of cash while on holiday in Europe, will
enjoy raised standards of service if they need to have money sent
to them, following proposals published in a Treasury consultation
document today.

The document sets out proposals for implementing the EC Cross
Border Credit Transfers Directive. Cross-border credit transfers
are the modern way to send money abroad, replacing the more
traditional methods of bankers drafts and cheques.

The proposals aim to ensure that individuals and business receive
minimum standards from banks or other institutions transferring
money between Member States.

The Directive aims to raise standards throughout the EU, for
transfers up to 50,000 ecu (about 30,000 Pounds). It covers:

    -     customer information on delivery times and prices;
    -     compensation for late delivery;
    -     prohibition for double charging;
    -     money back guarantee for failure to deliver; and
    -     complaints procedures.

Commenting on the proposals, Economic Secretary Helen Liddell
said:

     "Banks in all countries need to work to the same standards
     in order to satisfy their customers. Implementation of this
     Directive will help us achieve this.

     "Small firms and individuals will find these proposals very
     useful. It will take the worry out of travelling abroad,
     and those in sudden difficulty will have cause to welcome
     these proposals."

The consultation period will last for six months.





NOTES TO EDITORS

1.   A summary of the EC Directive is attached.


2.   Media copies of the consultation document are available from
the Treasury Press Office on 0171 270 5185.

3.   Non-media copies are available from Mary Gillespie at the
Treasury on 0171 270 6978.

4.   EC Directive 97/5 on Cross Border Credit Transfers came into
force on 14 February 1997 and must be implemented by Member
States no later than 14 August 1999.

5.   If you have access to the Internet you can find this news
release and other Treasury material at http://www.hm-
treasury.gov.uk.





SUMMARY OF THE  DIRECTIVE

The Directive lays down minimum standards of service for
cross-border credit transfers, which are unconditional
payment orders originated by customers of banks or other
service providers.  This is an increasingly popular way of
transferring money abroad, taking the place of more
traditional methods, such as bankers drafts or cheques.  The
Directive aims to ensure that banks or other institutions
transferring 50,000 ecu or less between member states meet
the following requirements:

     - customers must be provided with information before a
     transaction, on the time to be taken, the basis of
     commission or charges, exchange rate and redress
     procedures (Article 3) plus, following a transaction,
     a reference allowing identification of a transfer and
     the total charges (Article 4);

     - transfers must be credited to the beneficiary's
     account within six working days, unless the originator
     and her/his bank specifically agree another timescale
     (Articles 5 and 6.1);

     - interest is paid by the originator's bank if the
     transfer takes longer than six working days or the
     agreed alternative timescale (Article 6.2);

     - all charges for the transfer will be paid by the
     originator to her/his bank, and the beneficiary's bank
     cannot deduct charges from the money transferred,
     unless the originator has specifically indicated that
     charges should be shared with the beneficiary (Article
     7.1); 

     - if double-charging does occur, the originator's bank
     will have to reimburse the beneficiary or the
     originator any sum wrongly deducted, or the beneficiary
     bank will have to reimburse the excess fees to the
     beneficiary (Articles 7.2 and 7.3);

     - if transfers fail to reach the beneficiary's bank,
     the originator must be reimbursed in full up to a
     ceiling of 12,500 ecu, within 14 days of the customer's
     request, with repayment of charges and fees, plus
     interest (Article 8); 

Institutions are to be released from their obligations under
the Directive, in cases of "force majeure" (Article 9).

Member states must ensure that there are adequate and
effective complaints and redress procedures for the
settlement of disputes (Article 10).  

The Directive entered into force on 14 February 1997 and is
to be implemented no later than 14 August 1999 (Articles 11-
14).