Cheque changes could increase debt help demand

17/12/2009

The Payments Council, made up of financial services providers, has voted to phase out cheques by October 31st 2018.

Lower customer usage of the payment method, with the number of cheques being written each day falling from 10.9 million in 1990 to 3.8 million in 2008, was a major factor behind the decision.

However, the move could result in more people suffering from personal financial problems and seeking out debt solutions.

The Payments Council has previously decided that the cheque card system will be removed from UK stores by 2011.

Many retailers have also already stopped accepting the payment method.

Andrew Harrop, head of public policy for charity Age Concern and Help the Aged, advised against phasing out the payment method.

"Many older people rely on cheques as their main form of payment and will be very worried about how they will manage if they are withdrawn," he said.

"Our fear is that setting a date will give the green light to banks and retailers to withdraw cheques even earlier than 2018, as some already have."

Kevin Still, EuroDebt director, added: "We have a large number of clients that still make payments by cheque, many at Post Offices counters and by post.

"Clients want the flexibility of paying when they can rather being forced down the route of setting up direct debits or standing orders."

Tags; Debt Management and Banking,

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