Banks try to siam left right and centre?

the beginning of "bridge"

Weeks ago, there were outburst about banks, quietly removing the liability cap from the terms and conditions and the way they handle fraudulent transactions done with stolen/lost cards. Some banks (I think they are Citibank and MayBank) have since chosen to take "honourable road" by re-instating the liability cap.

Today I read about the Law Society president questioning banks' practice of excluding themselves from liability (yes again) for losses suffered by accountholders for forged cheques.

Under the Bills of Exchange Act, your bank is supposed to honour your cheque ie. pay in accordance to written instruction with legitimate approval. The law does not protect the banks from liability from errorneously debiting customer's account without legitimate approval.

Until this unilaterally created confusion is cleared up, you better hang on tighter to your cheque books.