General Chat

Received a letter from the bank today reminding that the cheque guarantee scheme will close on 30th June 2011. The amount guaranteed currently is £50, £100 or £250 as shown in the hologram on your debit or credit card.

Whilst you can still issue cheques for payment (even they will be withdrawn at some stage, but not for several years) after this date they will only be paid if you have enough money or available credit in your account. It is therefore possible that certain suppliers of gods and services will be reluctant to accept cheques as there is the risk to them they may be returned unpaid.

Yes.all part of the p;an to do away with cheques altogether !

I don't have a problem with cheques being withdrawn in general, i seldom use them, except for my local hairdressers, who refuse to have an ATM, so it's either cash or cheque. I don't normally carry much cash, and as hairdressing isn't a fiver any more, will need to take a trip into town to draw cash from the bank.
I do feel sorry for older people though, they have been merrily paying bills with cheques for years, and some will find it very difficult to cope with internet banking, plastic cards and so on.

Cheques themselves are not yet being withdrawn, just the guarantee scheme. It will be down to the individual supplier whether or not they decide to accept the increased risk, or stop accepting cheques in favour of other payment methods.

You hairdresser may decide they are happy to continue taking your cheque as a regular customer they know. Ask them next time you visit what they intend doing.

I must admit, the only time I seem to write a cheque these days is to go in a birthday card, but even my two sons have asked that we do an on-line bank to bank transfer instead. I can't remember the last time I issued a guaranteed cheque - must be the best part of ten years....!

The people who will be hit will be small tradesmen like the plumber, the handyman, the man who puts in double glazing etc. Then prices will go up as they are charged for C card facilities. Actually I still pay my Credit card bill by check as well.

And what about things like collections on GR for flowers etc when people are unwell. Cheques are often used for that. Not everyone wants to give people their bank details to do a bank transfer.

We have a milkman delivering to the house. He comes around 4.30 am or thereabouts and is paid by cheque because I seldom see him.
Alot of elderly people near here rely on his regular doorstep delivery, so we all need cheques.


Gwyn

Gwyn,

Cheques are still going to be around for at least 7 years or so. What is going is the cheque guarantee system.

Like you, we used to pay the milkman by cheque, until last year when we changed to a Dairy Crest internet account and now pay each month by direct debit. We get the bill emailed a few days before it is due to be paid so can easily check it is correct.