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by Lib Dem team on 4 March, 2010
Mark Hunter has been leading the “Save the Cheque” campaign, aiming to persuade the banks not to dump cheques in a few years time – millions are still sent every day and they’re used far more than electronic banking.
Part of that campaign was a petition on the Number 10 website, to which we’ve now had a Government response.
The closure of Cheque and Credit Clearing is a commercial decision and one that the Payments Council, an independent body that sets the strategy for UK payment systems, will take. The Government, however, recognises that certain groups still value cheques as a significant method of payment and appreciates all concerns.
The Government believes it is imperative that adequate alternatives be in place for all users of cheques, in particular for users identified as being highly dependent on this method of payment (such as the elderly, small businesses and the Third Sector) ahead of any potential closure of the cheque clearing system.
The Government further considers that the Payments Council, in consultation with all users of cheques, should develop a robust set of criteria by which the suitability and usability of the alternatives are assessed, and should develop a strategy to make users aware of the available alternatives.
The petition read:
We the undersigned petition the Prime Minister to save the cheque by reminding the banks of their duty to serve the customer – and not vice versa – and by asking members of the Payments Council to vote against abolishing the cheque bearing in mind the great inconvenience such a decision would cause to Britain’s most vulnerable people.
With additional information:
On 16 December 2009 the Payments Council – which represents the major banks – will vote on whether or not to scrap the cheque as a method of payment in Britain. Over 4 million cheques are being written each day and many people prefer to pay with goods and services in this way. Some of Britain’s most vulnerable people, including many elderly, disabled and housebound people, rely on cheques as a means of payment and will be greatly inconvenienced by this decision. The “save the cheque” campaign is backed by a high number of MPs from all political parties, is lead by Cheadle MP Mark Hunter and supported by leading consumer group Which? The campaign seeks to ensure the Payments Council do not decide to abolish the cheque.
We still have several years to save the cheque (or to get an alternative that meets the needs of customers, especially the elderly, and not just the bankers).
16 Comments
Sorry for my ‘late entry’ but I strongly support this campaign. Is the petition still open, and if not how can I support?
I hope the campaign gets more support now the Treasury Committee has recieved and published its evidence submissions. Many in favour of keeping the cheque.
The Payments Council are still lacking in any plans to modernise the system or minimise the impact of the process on the environment. Commercial decisions should be made but they must be published otherwise they can not be quantified.
I’ve never had a security problem with cheques, but have had unauthorised withdrawals from my credit and debit card accounts. The cheque is essential for paying bills for local services.
Keep the cheque – it’s safe and simple!
The banks are here to provide the service that is required by the customer, not what suits them.So i strongly support any petition to keep the cheque, and urge the government of the day to ensure the cheque is kept in use
People are think that everything can be paid on line are clearly living in a narrow world of large-scale commerce where they apparently never pay a small tradesman or give to one of the smaller charities, let alone pay back a friend or partner to sort out personal finance or send a money-present to a young relative. The banks who imagine the cheque can easily be abolished are not living in the real world.
i am in support of your petition as i am a member of Inner Wheel Club of Portadown District 16 Northern Ireland. by getting rid of the cheque it would have major implications for our organisation. i am therefore making this enquiry as to whether or not the petition is still ongoing and how can i put my name to it? Thanks
The withdrawal of Cheques will hinder small freindly societies e.g. Canine Societies, Village Clubs. Because they will not be able to afford the costs involved in running a Chip & Pin contract.
I strongly agree with this. The phasing out of cheques is indicative of the general trend of large corporations to make us do their work and to cut corners regardless of whether it’s popular with their customers. I am not an elderly person, I don’t run a small business, but I do have limited time to spend online and I like to send a cheque to settle my household bills when it suits me, not when it suits the payee. I also use cheques to pay tradesman – the guy who delivers logs, the painter and decorator, the gardener etc. what other arrangements are there in place to do that? I am unwilling to carry lots of cash around, and again, it’s a hassle for ME to go to the cashpoint. I understand from talking to people who run medium sized businesses that the banks fleece them for having the facility to take debit/credit cards anyway. The banks are greedy and thoughtless. Unfortunately no one believes they have any power when it comes to confronting the massive edifice of THE BANKS! We must fight this though.
I am secretary of Wolverhampton U3A, and I also organise trips for our members. I am against the abolition of cheques as this would make it very difficult to collect our annual subscriptions and payments for trips.
The banks have received huge taxpayer funded resources to bail them out of a crisis induced largely by their inept handing of banking businesses.Bankers are now being paid massive bonuses – even after receiving our monies. The banks should not be allowed to abolish cheques. The banks have a civic duty in this regard and can well afford to allocate some of their massive funds to support the continuing of cheques.
The only alternative to cheques in many circumstances is cash or card transactions via a mobile phone connection. Many remote parts of the countryside do not have mobile phone coverage and are not going to have it unless it is proposed to put phone masts everywhere.
Transactions DO take place between people in remote parts of the countryside, for example, at events based round riding, cycling, running, orienteering, motorcycling – there must be more – and pet shows, where entry fees and sponsorship money are collected on the day of the event.
What about schools collecting money for the school trip – how much admin time would be wasted by parents ringing up to pay over the phone? Or lets insist on BACs payments direct to the school bank account as an alternative – would that be Mrs Smith of 5B who has forgotten to put their unique identifier in or Mrs Smith of 6A? No, send the children to school with the cash instead, much easier – excellent idea to encourage teenage muggings!
Also, contractors for farming services often expect to be paid there and then, as do outdoor pursuits instructors and farriers – and hauliers, where the journey may well end at a remote spot.
And there are some people you wouldn’t trust with your card details – every card transaction generates a record of the full card long number (PAN) and expiry date which is retained by the receiver – does the Payments Council and PCI DSS want to give card terminals to every itinerant who might do a bit of garden clearance?
And what about those freak weather conditions we are apparently going to experience more of that can bring down phone lines? Is all commercial activity to be suspended until the phones are operating again. A paper-based back-up system is a necessity. The Payments Council doesn’t appear to have done a written risk assessment or prepared a crisis management plan.
The naivety of the Payments Council in assuming that cheques will eventually become completely redundant simply because the number of cheque transactions appears to be tending to zero baffles me. Aren’t they benefiting from the increase in university education?
I’m sorry to be so scathing but this proposal has not been thought through – I wish your campaign the best of luck.
I run a small business and rely on cheques as a method of payment. Neither the majority of my customers nor I want to be handling large amounts of cash. Any current alternative involves me paying for the use which means I must put up my prices – even a £20 bill would rise by at least £3. If every small business does this then inflation rises. Until there is an affordable, user friendly alternative then cheques must continue.
I am pleased to see someone is mounting a campaign. For three reasons I am against the removal of cheques. 1) As a freehold company we use cheques to pay for household bills and it requires 2 signatures to release a cheque. Without this method of payment any director could transfer money out of the account without consulting the others.
2) As I work full-time I am rarely around to pay workpeople such as window cleaners. Presently I can send a cheque, what will they and I do when I do not have this method.
3) Most importantly my parents live in very rural Wales and do not have or wish to use the Internet. They like to give presents to members of the family in the form of cheques and pay for the odd mail order gift rather than use credit or debit cards. What will they do? They already feel disenfranchised as everything seems to be about the Web, not all can afford this access nor is it reliable in areas where the electricity still goes out with regularity.
Thank you for raising this campaign. What else can I do?
I am against the removal of cheques, as a recently disabled person I have had to rely on them for paying tradespeople and as I am now unable to trawl the shops for presents for birthday and Christmas presents for my children and grandchildren cheques are a boon.
I agree with the comments above. Cheques are easy to use and allow one to control finances, compared with direct debit or internet transactions.
Worryingly, some companies now refuse to accept payment by cheque and insist on direct debit or internet transaction.
The increasing use of companies to accept cheques for payement paves the way for a announcenment that cheques will be withdrawn because nobody uses them.
What I’m particularly worried about is all the small businesses which rely on cheques. If our window cleaner calls when we’re out, we send him a cheque. He doesn’t have a facility for debit cards or direct debits. Then there are the coal merchant and the roofer, the gardener and the bloke who fixes the paint chips on your car, the veg box people etc. etc.
I thought this government was supposed to support such people.