Press Releases
Bank branches could go as cheque countdown begins
Thousands of customers could be left without local banking services if moves to phase out cheques lead to branch closures, warns Geoff Holland of the British Cheque & Credit Association (BCCA).
"There were 1.4 billion cheques written in 2008 but the UK Payments Council, which is effectively controlled by the banks, has confirmed today (16 December) that it is aiming to phase out the national cheque clearing system by 31 October 2018," he explained.
"Fewer cheques means less need for high street bank branches as customers are forced to use electronic payments instead. This is bad news for bank customers, and particularly the elderly or housebound who do not have the access or confidence to use the internet for electronic payments.
"The other worrying issue is that there are no reliable or convenient replacements for cheques yet in place. The sensible approach would be to have alternative systems up and running before getting rid of the cheque clearing system."
The BCCA is urging the Payments Council to look closely at the impact of phasing out cheques, particularly the problems of reduced access to banking services for consumers and the likelihood of increased fraud. In 2008 cheque fraud was only 5.9% of the total bank fraud reported, at £41.9 million. Online banking fraud was £52.5 million - up 132% compared with 2007 - and plastic card fraud was £609.9 million.
Added Geoff Holland: "The Payments Council should hold off agreeing a target date for the demise of the cheque until we have reliable alternatives in place that are widely accepted. Any replacement system needs to be convenient, easy and secure to use, for both consumers and the businesses, charities and other organisations they make payments to.
"People don't object to change if it brings benefits such as a better service, but some major questions must be answered before we say farewell to cheques."
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The British Cheque & Credit Association (BCCA) represents around 800 businesses who offer customers third party cheque cashing facilities and other financial services. Members range from quoted public companies to sole traders, and provide a high quality service which helps customers to deal with temporary cash flow problems. www.bcca.co.uk
For further information please contact Jill Hulme on 07913 278514.
