Post Office Card Accounts.

elvis_bloggs

I've just heard on the radio that the Post Office Card Accounts are to be phased out by 2010, anyone using such an account to draw benefits will have to use a bank account, although the benefit can still be paid at the Post Office.

CIS

The report I was reading the other day mentioned that cheque payments would be made as an alternative.

The report mentioned that postoffice payments cost £1.00 to make once the PO has its cut, bank payments cost 1p, that 1/100 of the cost.

Due to the number of problems that PO have had with administering the accounts I not surprised that the government is not renewing the contract.

margaretclare

There is also a threat to thousands of rural post offices which rely on the government's subsidy for this type of account, to stay in business.

I think this is a great shame. Rural post offices should somehow be viable and should stay as part of our rural landscape.

Although, having said all that, I must admit that I do my banking online, have cahoot accounts, pensions drop in regular as clockwork every 4 weeks and although B and I are both wrinklies, we rarely if ever go to a post office! We've been amazed to see approx 30 people waiting outside the local PO until it opens at 9 on a Monday morning, on a cold freezing morning, who needs it! So how to keep the POs open when the like of us rarely go there?

Aunty Margaret

Savvy_Sue

margaretclare wrote:

There is also a threat to thousands of rural post offices which rely on the government's subsidy for this type of account, to stay in business.

I think this is a great shame. Rural post offices should somehow be viable and should stay as part of our rural landscape.

Never mind rural post offices, what about those in cities and towns? Apparently there used to be a PO at the end of our road, that must have gone before we moved here (6 years ago). But a couple of years ago the one near work went, and just recently our nearest one went, along with another not far away. Great if you can drive to the next nearest ones, but so many people can't!

No problem, you might think, use the bank instead for withdrawing cash. Sorry, but there are NO bank branches within an easy walk of either work or home.

margaretclare wrote:

So how to keep the POs open when the like of us rarely go there?

Indeed ...

Anthillmob

this is appauling, especially as po accounts are being opened by lots of people on benefit because they have been encouraged to do so as they want to do away with cheques.

the LA i work for mention to those who still receive benefit cheques that if they are having probs opening a bank acct that they, the LA, will try all they can to help that person open an account with the LA bankers -barclays in this case-.

might be worth seeing if your LA can do the same.

margaretclare

Savvy_Sue wrote:

Never mind rural post offices, what about those in cities and towns? Apparently there used to be a PO at the end of our road, that must have gone before we moved here (6 years ago). But a couple of years ago the one near work went, and just recently our nearest one went, along with another not far away. Great if you can drive to the next nearest ones, but so many people can't.

The reason I mentioned rural as opposed to urban is that in the countryside there is often no other shop. At least in cities/towns there is usually a supermarket which has an ATM and it's possible to shop with a debit card. The countryside has lost so much of recent years....village schools closing, the pub, the shop/post office.

However, having looked at the Post Office's website, I see that the PO card account has very limited uses anyway. It can only be used to take out cash at the PO counter and only certain types of payments can be made into it. You couldn't shop with it using it as a debit card. You couldn't take out cash from an ATM with the PO card. I didn't realise that this type of account was so limited.

Be careful also - more of the LINK machines are starting to charge a fee for withdrawing cash. I got stung by one at a local Esso station yesterday and I could have kicked myself, because there was a NatWest ATM at the other side of the road! I've gone to that particular LINK machine many times and this is the first time they've charged. If I'd known I'd have gone to NatWest. I only wanted £10 out and I got charged £1.50 for it.

Aunty Margaret

Justicia

If true, that news is indeed very disappointing to hear. One of the main reasons for the development of these PO accounts was that many of the banks were very relunctant to issue accounts to those on benefits and if they did, were making it very difficult for them to maintain an account. If however, this issue (among others) is (genuinely) being corrected and rectified then I can see the use of the accounts declining over time, although I would be surprised if their need has indeed reduced this quickly, considering how recent they were first initiated...?

margaretclare wrote:

Be careful also - more of the LINK machines are starting to charge a fee for withdrawing cash. I got stung by one at a local Esso station yesterday and I could have kicked myself, because there was a NatWest ATM at the other side of the road! I've gone to that particular LINK machine many times and this is the first time they've charged. If I'd known I'd have gone to NatWest. I only wanted £10 out and I got charged £1.50 for it.

Did the cash machine have a warning of the charge on the screen before you finalised the transaction and withdrew the cash? I believe that they have to, to allow you to decline the transaction if necessary before a charge is made...?

margaretclare

Justicia wrote:

Did the cash machine have a warning of the charge on the screen before you finalised the transaction and withdrew the cash? I believe that they have to, to allow you to decline the transaction if necessary before a charge is made...?

Unfortunately if there was I didn't notice it until after I got back home. I'll just be a little more careful where I go in future.

Aunty Margaret

Iona_Penny

I retained my book to draw my child benefit from the tiny post office at the end of the road for as long as possible. 3 times I applied for a PO cashcard; the reasons were to have access to cash that didn't disappear into the pit of the current account, but more importantly to keep the services of a Post Office.

Finally, after speaking on the phone to the child benefit office I caved in, as my last payment book was coming to an end, so I had the benefit put into a BS account. Guess what? within 6 months the post office closed. I real concerns that it was made almost impossible for me to get a card account and if this was the situation with others then the PO can say it was a v small uptake.

Other people I talked to (not OAP) just didn't give a thought to the consequences of direct payment and I think we are reaping the rewards.

Moneybox on Radio 4 on saturday was talking about the end of card accounts, but even postmasters claim they were not told from the outset it would only have a limited life. Sadly I feel we have all been duped into using our offices less so they can be closed due to lack of use. Call me cynicle...:mad:

margaretclare

Hi Iona_Penny

I hear what you're saying, and I recall years ago when I had a forces allotment (money from husband in forces) I used to go along to a local post office to draw it every Monday morning - this was on a book similar to a pension book.

I do think that POs, especially rural POs, are a very precious resource. However, when I started receiving retirement pension it didn't occur to me to take the pension book option which I was offered. I've used bank accounts for so many years, I just couldn't imagine doing the same as I'd done all those years ago, going along every week with my book to draw cash. I had 2 bairns in a push-chair then and walking to the village PO was no problem - it was before I had a car or a phone even! Life is different now. Mobility is difficult - I am recovering from extensive hip surgery 6 weeks ago. I am just so pleased that 4 weeks' pension money and attendance allowance has dropped into my current account this morning, and I don't have to go anywhere/do anything to get it. It's chilly and grey outside, we don't want to go out. Our Tesco grocery order has just been delivered and I've just bought a DVD player online - none of this would be possible if we relied purely on cash, and having to go and draw it out from the PO.

I didn't realise that the PO card accounts had so few options. I imagined that it would be possible to use them in an ATM or as a debit card for shopping - not so. In addition, there are only limited types of payments that can be made into them. I think therefore that they have only limited use.

But I still think we should keep POs open, especially the rural ones! How to square this circle?

Aunty Margaret