Cheque Guarantee Cards

Alison69

I have been informed by my bank (Nationwide) that as from the end of June 2010 they are withdrawing the cheque guarantee card system and replacing it with debit cards. I do not want a debit card and wish to continue with my cheque book but have been told that I can either accept the change or move my account. Such attitude I find shocking. I am also due to go on holiday a day after they send the cards out and am now potentially being left with the risk of my current card not working while on holiday.

I used to work for a bank and am well aware of the pitfalls and high rates of fraud and errors involved with debit cards. I do not see why I should be put at this risk at the whim of a bank.

A lot of independent traders (where I prefer to shop) do not have card payment facilities because of the costs they incur. To that Nationwide told me you will just have to pay in cash. In that case do they really expect me to carry large amounts of cash around?

Has anyone else had this problem and is anyone aware of another bank which will provide a decent service? I have always recommended Nationwide to friends and family but never again. The way I have been treated in the last 4 weeks has been horrendous. They have also now taken to asking for an bank account number when they ring up for ID and refuse to give information out when I refuse to give it due to concerns about fraud, yet we are constantly told not to give out details over the phone.

Help!!

JuicyJesus

Nationwide's hands are tied in this; the cheque guarantee scheme is being removed (for all banks) effective next year. If you go to any other bank you will get the same answer - many will now not issue cheque guarantee cards to new or existing customers, simply because by the time the cards expire the guarantee facility will be useless. Cheques themselves are staying for a little while longer, with the end set years from now.

The only answer would be either seeing if the traders you use will take unguaranteed cheques, or alternatively switching to cash and cards instead.

peteuk

This is i quess in the build up to withdrawing cheques from use. Not many places take a cheque these days, with or without a card. I have had the arguement that I wasnt aware that you dont take cheques and I cant see what the problem is....but it falls on deaf ears.

I cant remeber when they are withdrawing cheques, anybody help?

noh

peteuk wrote: »

I cant remeber when they are withdrawing cheques, anybody help?

Target date of 31st October 2018

http://www.paymentscouncil.org.uk/media_centre/press_releases_new/-/page/855/

pmduk

Lloyds TSB have already said that their cheque guarantee cards cannot be used after June 2011. Even if you use them, the cheques will not be guaranteed.

jamesd

Alison69, you might try NatWest or RBS. Seems as though Lloyds might also be a good prospect. Check before opening the account and make it clear that wanting a cheque guarantee card is why you're interested in opening the account.

You might also consider the security risk of cheques, which require disclosing your bank account details to everyone who sees your cheques.

When it comes to the calls, you're entirely correct to refuse to disclose your account number and should continue to do so. Relying on their calling line identification is insecure because that's too easy to fake. Asking for the details of the group you should ask to be transferred to after calling one of their published numbers is the secure way to go.

MrTomato

Co-op and Smile will still give a CGC.

But why the problem? These small independent traders will still prefer cash. And how much are you spending in them and what sort of stuff are you buying to warrant carry copious sums of money.

rb10

The whole cheque guarantee scheme is due to end on 30th June 2011. After this date, you will not be able to guarantee any cheque at all, anywhere in the UK.

This applies to all banks and building societies.

Whilst cheques do still have their uses, this is not something that is unique to Nationwide. Presumably the small independent retailers will soon find that they have to accept card payments. (Note that this is not always more expensive for the retailer, as most business bank accounts will charge you for paying cash and cheques into your account. It's just challenging the status quo.)

Alison69 wrote: »

I used to work for a bank and am well aware of the pitfalls and high rates of fraud and errors involved with debit cards. I do not see why I should be put at this risk at the whim of a bank.

The rate of fraud on debit cards is not actually that high. A massive number of debit and credit card transactions take place every day in the UK, and only a tiny, tiny number of these are fraudulent.

And as you say you once worked for a bank, you'll also be aware of how easy it generally is to get your money back if you are a victim of fraud.

Alison69

Thanks all. I am only too aware of the amount of fradulent transactions and also simple errors like the wrong amount being taken from an account. I am also aware that to correct such issues can take between 1-3 months and involves countless phone calls. I wish to avoid all that. I have never had an issue using cheques and there will always be times when you perhaps need to pay someone and a cheque or cash is the only method.

The decision to withdraw cheques has not actually been taken yet. By withdrawing the cheque guarantee cards it will be virtually impossible to use cheques thereby engineering a position where banks can say no-one uses them therefore we can get rid of them. Also consider elderly housebound people who rely on cheques to make payments, if this is removed what are they to do.

To go on a general shopping trip and to have to carry £100 or more is putting everyone at an unacceptable risk. For example if I wished to purchase electrical equipment which is often expensive.

At the end of the day it is withdrawing consumer choice with no consultation and not taking into account personal circumstances. But then I guess the banks don't care about that.

DCFC79

Its been common knowledge cheques were going to go so why make a mountain out of a molehill

noh

Alison69 wrote: »

To go on a general shopping trip and to have to carry £100 or more is putting everyone at an unacceptable risk. For example if I wished to purchase electrical equipment which is often expensive.

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You could use your credit card!