



The City watchdog is warning the public to steer clear of a fake bank which claims to have come up with a way for people to wipe out their debts for free – provided they hand over some cash.



WeRe Bank is a Manchester-based venture which claims to have created its own currency, and unfortunately for Britain’s banks, utility companies and councils, it appears many people have fallen for its outlandish promises, and have been trying to pay off their debts using its cheques.



WeRe Bank, which operates via a website, has been encouraging people to pay a £35 joining fee, plus £10 a month, in return for which they receive a cheque book which it says they can use to eradicate their debts.



It tells prospective customers that its cheques can be used to pay a variety of debts, including tax demands, utility bills and court fines, and says that under sections 42 and 43 of the Bills of Exchange Act 1882, if a WeRe Bank cheque is refused by a company or official body, it is “acting in dishonour” and the individual’s liability for the debt ceases. Its website also mentions payments for other borrowing such as credit card debts, mortgage arrears and student loans.



After receiving many reports of WeRe Bank’s activities, the Financial Conduct Authority has issued a warning, saying that while the venture styles itself as a bank, it does not appear to be one. “We advise any consumers considering dealing with WeRe Bank to proceed with caution,” the FCA said. “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 WeRe cheques, even though they have not had to pay any money into an account.”

Visitors to the website are told the bank is “



WeRe cheque.

free from all, every and any statutory planetary political rogue regime dictate or order”. To join they are asked

to issue a promissory note – a signed document in which one party agrees to pay a sum of money to another – payable to WeRe Bank for the sum of £150,000 “within a 10 year anniversary” of joining (though the venture states that it will not need to call in this note).



Nevertheless, it appears that people have been signing up and trying to use WeRe cheques. The FCA said: “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.”

It is understood that Southend-on-Sea borough council in Essex has issued an alert to its staff telling them to be “extra vigilant” after it received WeRe cheques from residents to pay council tax, parking fines and other debts. It said the cheques were printed on “poor quality paper”, carry an account number that is “all 8s” and feature an invalid sort code. “These cheques, if presented to the bank, will not be honoured, hence the council will not receive the funds into our bank account, and the council will incur a loss,” it added.



The FCA said: “We believe 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 judgments or repossession proceedings.”



It points out one obvious flaw in the venture’s business model: cheques – whoever they are issued by – are not legal tender, and never have been. This means that if you owe someone money, they are not obliged to accept a cheque.

There is little information about who is behind the “bank”. It gives its address as 83 Ducie Street, Manchester, but scores of companies are registered at this address.



The Guardian has attempted to contact those behind WeRe Bank, but has had no success as yet.