Abolition of cheques - Payments Council is a QUANGO

Primrose

As the Payments Council is a QUANGO does anybody know whether they're going to be abolished? They're the body with responsibility for deciding whether the abolition of cheques in 2018 will go ahead or not.

In response to their recent consultation exercise, I've just received a letter saying that no decision will be made unless by 2016, they are convinced that alternative suitable options are available, and these will continue to be investigated.

However, will anybody still be around to investigate this issue? I know that many elderly & housebound people, charities and clubs would find themselves in real difficulties if cheques were abolished and wonder who now has responsibility for reviewing this issue?

System

The Payments Council is a trade association funded by its members, the banks.
http://www.paymentscouncil.org.uk/about_us/
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." (Adam Smith, The Wealth of Nations, 1776.)
The existence of cheques is a commercial matter for the banks to decide in their self-interest.

LongTermLurker

When they first started talking about abolishing cheques, I thought "OK, rarely use them, rather not, won't miss them" but thinking about it, although there are and will be suitable and more efficient alternatives, I fear small businesses won't use them. There are still shops that don't take cards - credit or debit - and guest houses/B&B that are cheque or cash only.

If such people can't accept cheques, they'll just say "cash only" which means anyone having a B&B holiday, especially to remote rural areas without cash machines, will have to carry enough cash for maybe a couple of weeks' accomodation.

So I'm actually now of the opinion they should stay - they serve a purpose when confronted by awkward luddites!

daveyjp

The year 2018 was given to allow time for alternatives to be put in place. By then there will be a whole host of ways of paying and the luddites will be 8 years older and passing into history - I expect mobile phone technology to play a large part.

pmduk

As youngnick has said, Payments Council is not a Quango, so is not planned to be abolished

LongTermLurker

daveyjp wrote: »

The year 2018 was given to allow time for alternatives to be put in place. By then there will be a whole host of ways of paying and the luddites will be 8 years older and passing into history - I expect mobile phone technology to play a large part.

I've stayed in B&Bs where there's no mobile phone reception - I've even been to petrol stations (well, a pump at the side of the road outside the butchers) where they don't take cards. For small businesses, whether the guy repairing your wall or small pub/guest house, cash is king and it's hard to see them taking up new technology when they don't even own a mobile.

brewerdave

Abolition of cheques will just drive the "black economy" forward. Many small tradesmen are already reluctant to accept cheques - it will give them a perfect excuse to operate cash only - a licence to avoid tax!!

jonesMUFCforever

LongTermLurker wrote: »

When they first started talking about abolishing cheques, I thought "OK, rarely use them, rather not, won't miss them" but thinking about it, although there are and will be suitable and more efficient alternatives, I fear small businesses won't use them. There are still shops that don't take cards - credit or debit - and guest houses/B&B that are cheque or cash only.

If such people can't accept cheques, they'll just say "cash only" which means anyone having a B&B holiday, especially to remote rural areas without cash machines, will have to carry enough cash for maybe a couple of weeks' accomodation.

So I'm actually now of the opinion they should stay - they serve a purpose when confronted by awkward luddites!

The cheque guarantee system is coming to an end next June - if I was running a B&B I wouldn't accept a cheque if there was a chance it would not be honoured.

LongTermLurker

jonesMUFCforever wrote: »

The cheque guarantee system is coming to an end next June - if I was running a B&B I wouldn't accept a cheque if there was a chance it would not be honoured.

I haven't been asked for a guarantee card in years (don't use them much so it's not much of a statistic) and have hardly ever been asked for it. I've paid for quite a few B&Bs and local tradesmen using cheques and I honestly can't remember the last time I was asked for the number - I vaguely remember being surprised that they did ask for it and had to dig it out of my wallet.

brewerdave

LongTermLurker wrote: »

I haven't been asked for a guarantee card in years (don't use them much so it's not much of a statistic) and have hardly ever been asked for it. I've paid for quite a few B&Bs and local tradesmen using cheques and I honestly can't remember the last time I was asked for the number - I vaguely remember being surprised that they did ask for it and had to dig it out of my wallet.

In direct contrast ...I paid a bill to the local garage last week for a service;even tho' I've used him numerous times he asked for the guarantee card and wrote the number on the back of the cheque. Recently I had some minor building work done,he also asked for the card number.;)

LongTermLurker

In direct contrast ...

Obviously more trusting up this neck of the woods.

That or I look more honest than you (no offence)