Grumpy old fart!!!

"If you talk to God you're religious. If God talks to you, you're psychotic."

Cheques

Following the recent statement by the UK’s Payments Council that cheqiues would phased out by October 2018, Santander / Alliance and Leicester have taken the first step by advising their customers that no new cheque guarantee cards will be issued to customers. The cheques guareente scheeme will be withdrawd by 30th June 2011. It appears that we will still be able to use unguaranteed cheques, providing they are accepted.

 Despite assurances that customers would be able to use an alternative to the cheque this has proven to be yet another lie by the banking industry. Credit cards may be an alternative but like many, being unemployed but retired Santander like several credit card companies have refussed me this alternative, perhaps using cash is the way forward.

March 29, 2010 Posted by | Uncategorized | , , , , , , | Leave a comment

Cheques checking out

 

 

Cheques will be phased out by October 31 2018, the UK’s Payments Council has announced. The 15-strong body, comprising members of the banking industry, said cheques were in “long-term, terminal decline”. Chief executive Paul Smee said: “There are many more efficient ways of making payments than by paper in the 21st century, and the time is ripe for the economy as a whole to reap the benefits of its replacement.”

The council faced opposition from businesses and charities who argued that when individuals can no longer use cheques to make payments or donations they will loose money and much needed contributions. Personally I very rarely use a credit card and certainly not a debit card when making contributions to charities by post.

The Payments Council have vowed to work over the next nine years to “promote and explain” the alternatives to the public and their goal is to ensure that by the cheques death knell in 2018 there will be no scenario where customers still need to use a cheque.

Despite the decline in the use of cheques from approximately 10.9 million per day in 1990 there are still approximately 4 million cheques used each day in 2008, clearly there is still a demand, although a declining demand by the public.

If cheques are removed from the system there has to be concerns that many will resort to paying by cash and keeping large sums at home with the increased risk of theft or exploitation of the more vulnerable in society. In addition for those who have been refused access to a credit card due to unemployment or retirement the humble cheque is a safe way to make transactions by post. For those who travel aboard the travellers cheque has often been a useful back up in the event of debit card faults, another avenue that the Payments Council will need to address by 2018.

Despite the Payments Council’s pledge, there is a danger that some members of society will be denied access to a safe and convenient method of making payments. Perhaps the banks need reminding that although we use their facilities they hold and use our money, they are there to serve us, the general public not the other way round.

December 16, 2009 Posted by | Uncategorized | , , , , , | Leave a comment