29th Jun 2009 - 00:00
Abstract
The Payments Council has announced that cheque guarantee cards will be phased out in mid-2011 following a unanimous decision made by the Board.
It described the use of cheque guarantee cards as in 'terminal decline' and said a realistic withdrawal timescale is two years. Usage is estimated to be down by 70% in the last five years. The Council believes that alternatives to the guaranteed cheque exist and are widely available, and that a well-planned withdrawal of the scheme will not cause any significant problems for users or acceptors. Brian Pomeroy, chairman of the Payments Council said: "The Payments Council undertook an objective review of the Cheque Guarantee Card Scheme as one of the key priorities identified in the UK's first National Payments Plan. "We went to great lengths to listen to the views of all users and acceptors of guaranteed cheques and have only made the decision to withdraw the Scheme after satisfying ourselves that no group will be unfairly affected or find that there is no means of making a payment."