When the finance industry announced that cheques would be phased out by 2018 there was uproar. Such was the outpouring of opposition that two years later, the Payments Council was forced to reverse its decision and promise to keep the popular paper payment slips for as long as they were needed. But Money Mail readers today sound the alarm over fears that firms are once again trying to kill off the humble cheque.
Some new mobile banks, such as Monzo and Starling Bank, do not offer a chequebook at all. Yet despite making up just 1 per cent of all payments, cheques remain vital to thousands of people. Landlord Anthony Gianni, for instance, was grateful he had his chequebook to fall back on when repaying his mortgage last October.
Anthony, 66, had tried to send _176,000 electronically to his lender's HSBC account. But after checking the name and account details, staff at his local Santander branch told him they couldn't confirm that it belonged to the mortgage firm. Anthony, who lives in Sunbury-on-Thames, Surrey, says: 'They said I could still make the transfer but if it didn't go to the right account, they might not be able to get the money back. There was no way I could go through with it when the risk was on me.' The only way he could make sure the money went to the lender was to send a cheque. He adds: 'It may have taken a few more days to clear but at least I knew that only Rosinca Mortgages could cash my cheque.' Santander says accounts may not be verified if the name does not match the iban account number or where there has been a significant mistake in either. Corporate accounts may not be approved either as not all are set up for the Confirmation of Payee security check.
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