About Us

The BCCA (British Cheque Cashers Association) was established in 1994 to initially represent the interests of businesses that cashed third party cheques. Since this time, the BCCA's remit has been extended to cover other products which are detailed below. Currently, the BCCA has around 850 members. They range from UK and international public companies to sole traders.

Third Party Cheque Cashing

This facility is very useful for the unbanked or those that cannot wait for a cheque to clear through the banking system. A lot of migrant workers find this a valuable service as many are unable to obtain a bank account.

The way that third party cheque cashing works is that a member of the public will visit a cheque casher with, for example, a wages cheque made payable to the customer (the 'payee'). The cheque casher, by virtue of the Money Laundering Regulations will make suitable checks to identify and verify the customer and, if satisfied that the person is who they say they are, may decide to cash the cheque. It is also likely that the cheque casher will make enquiries about the cheque with the drawer (i.e. whoever wrote the cheque).

There is a charge for this service which is usually deducted from the face value of the cheque. The cheque casher pays the customer, less the fee, and the customer walks away with the cash in their hands. The cheque is then banked by the cheque casher and payment made by the drawer of the cheque.

Pay Day Loans

Later, the BCCA extended its remit to include a short term loan product often referred to as a 'Pay Day loan' which is regulated by the Consumer Credit Act. The general purpose of the loan is to provide people with a cash advance until their next pay day and they are usually up to 30 days in duration. However, in certain circumstances the customer can elect to 'renew' the loan for a fee and delay payment for a further agreed period of time.

The purpose of pay day loans is to act as a short term solution to temporary cash flow problems experienced by consumers. It is not intended for sustained borrowing over long periods.

Other short term loan products

In July 2008, the BCCA extended its remit further to include other types of unsecured short term loan products where the intended repayment period is 6 months or less. This means that businesses that offer such products can apply for BCCA membership. However, home credit and pawn broking are excluded. The type of businesses that might apply for membership of the BCCA are those offering, for example, debit card advances and short term instalment credit products.