Is there a Future for Verification and Conclusive Evidence (‘VCE’) Clauses in Australian Banking Contracts?

In certain jurisdictions, Verification and Conclusive Evidence (‘VCE') clauses operate successfully in banking contracts in order to protect the interests of banks in their dealings with their customers. The VCE clause has two components: the verification component imposes a duty on the customer to verify account statement details, and the conclusive evidence aspect declares that the information in the statement is deemed to be correct and incontrovertible after a prescribed time. The objective of this paper is to determine whether the use (or extended use) of VCE clauses can be justified in Australian banking contracts. This paper will provide an introduction to the nature and operation of VCE clauses in relation to bank account statements and identify public and private law issues and economic policies that may influence or determine their scope and application.