WeRe Bank is a concept created by Alan Peter Smith, trading as "Peter of England," based on his concept of "Universal Energy Transfer" and closely linked with his "Re Movement." The Movement is described as providing an alternative to the present banking system which Smith describes as "fraudulent." Smith claims to have support "both on planet and off planet" for his project. The concept has gained publicity mainly via websites promoting alternative lifestyles, conspiracy theories and fringe theories.
The basis of WeRe Bank is the Re unit of currency, effectively a time-based currency where members can be credited with units according to the "energy" they expend. The most prominent feature of the concept is the "WeRe cheques" provided by Smith to Re Movement members. These have the appearance of a standard British bank cheque, and several websites have encouraged their readers to become WeRe members and attempt to use the "cheques" to settle debts such as mortgage arrears, loan repayments or utility bills. Because WeRe Bank is not a bank within the British Cheque and Credit Clearing Company system or even a company, and because WeRe Bank does not subscribe to the standards of the UK Payments Administration nor any of the world's clearing houses, the payees will not receive payment of the amounts on the fake cheques, meaning that the debt is unpaid, and can be increased by late payment fees, return check charges and legal costs.
Financial regulators in the UK (including the Financial Conduct Authority and the Financial Ombudsman Service) and in several other jurisdictions have published warnings to the public about WeRe Bank.
Video WeRe Bank
WeRe Bank "cheques"
WeRe Bank was launched in April 2015. Smith sold books of "cheques" to WeRe members. At various times the number of "cheques" has varied from 5 to 50. The layout of each document closely resembles a normal British bank cheque, and displays the number 75-01-81 in the format and position where a standard cheque would contain the sort code of the issuing bank. Smith's date of birth is 18-10-57 and the code is formed from these digits reversed.
As the "cheques" have superficially the appearance of a standard cheque, they may be accepted by the cash office of a payee company, who will then pass them to their bank along with regular cheques. Because they are not cheques drawn on a regular bank, it is not possible for them to clear through the normal system operated by Cheque and Credit Clearing Company. Indeed, Smith made it clear on the WeRe Bank website and Facebook page that WeRe Bank is not a member of any recognized clearing house such as the Cheque and Credit Clearing Company or the Society for Worldwide Interbank Financial Telecommunication.
Maps WeRe Bank
WeRe Bank "cheques" as a form of debt elimination
During May and June 2015, a number of websites and activists campaigning against the mainstream banking system, began promoting use of WeRe Bank "cheques" as a way to settle "public" debts such as mortgage debts, loan repayments or utilities. This is even though WeRe does not accept money from individual members, and Smith's website makes clear no transfer of funds will be made into the accounts of the payee companies.
Financial basis of the "bank"
When an individual becomes a member of WeRe Bank, they are required to deposit a promissory note to the value of £150,000. By this the member promises to pay that sum to WeRe Bank within ten years. Smith has stated that "over the past [period] since 2012, the people that have come on prior to this new formation have all pledged promissory notes to WeRe Bank. I think that rests at the moment at between 12-15 million that has been pledged already ... so according to conventional financial practice we are able to say that we have assets." He maintains that this means on the basis of these "assets", the "bank" is able to back up any WeRe cheque and therefore the cheque should be accepted for value as if it were itself a promissory note. Members also pay a £35 joining fee, and membership fees of £10 per month.
Regulator reaction
In September 2015, the UK's Financial Conduct Authority posted a "Consumer Notice" regarding WeRe Bank. This opened by saying that "The FCA has received many reports from consumers, public bodies and commercial organisations about an entity styling itself as WeRe Bank. Find out more about WeRe Bank's activities and why we have some concerns about it." The notice continued:
Although WeRe Bank refers to itself as a bank, based on the information currently available to us, it does not appear to be carrying on any activities that would require it to be authorised by the FCA. Regulated activities carried out by authorised firms include accepting deposits or providing advice on regulated investments.
We are concerned that vulnerable consumers may be attracted to WeRe Bank's claim that they will be able to pay off their debts 'for free' using RE cheques, even though they have not had to pay any money into an account.
...We have received numerous reports from financial institutions, councils, utility companies and other businesses that have been presented with WeRe cheques by consumers attempting to pay off their debts. None of these institutions has accepted the cheques as legitimate payment.
...we advise any consumers considering dealing with WeRe Bank to exercise caution.
The Financial Ombudsman Service gave a similar warning:
We believe that you are unlikely to be able to pay any of your debts using a cheque from WeRe Bank. Instead, you may end up with additional charges from your creditors for late payment. You could eventually be subject to other sanctions such as County Court Judgements or repossession proceedings.
Other regulators, including the Irish Central Bank and New Zealand Banking Ombudsman Scheme have also issued warnings.
References
See also
- Redemption movement - another source of worthless check-like drafts based on a fringe theory.
Source of the article : Wikipedia
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