Banks criticised on cheque guarantees

Simon Read
Tuesday 15 November 2011 20:00 EST
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British banks should reverse plans to scrap cheques by reintroducing the cheque guarantee cards that were phased out in June, the Treasury Select Committee will demand today.

"There is a case for reintroducing either the cheque guarantee card scheme or an alternative mechanism to ensure cheque acceptors have confidence when accepting cheques," it says.

The Payments Council prompted protests when it proposed phasing out cheques by 2018. Consumer groups accused banks of putting profits before customers. The plans were dropped, but the Council still scrapped cheque guarantee cards.

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