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Union Calls for a Check on Cheque Abolition Plans

NFU Scotland has called on the Payments Council to abandon its plans to abolish the ability to make payments by cheque by October 2018.

In responding to a consultation looking at updating the National Payments Plan, the Union has stated that the use of cheques remains an important method of payment and receipt for farming families.  The Union added that despite plans to extend rural broadband, on line methods of payment are not universally available or popular across rural Scotland.

NFU Scotland is asking the Payments Council to drop the proposed target date of 31 October 2018 for the closure of cheque clearings in the UK. 

NFU Scotland Policy Manager Nicola Clayton said:

“While it is recognised that the use of cheques has declined, cheques still remain an important and popular payment and receipt method for family farms – one that many value and trust.

“There is a strong degree of reluctance within the rural community to use banking methods that are Internet based, partly due to the isolation of many farms and crofts from the necessary infrastructure, such as high-speed rural broadband. 

“As well as those in rural areas, the ageing community is also very reluctant to stop using cheques – they like the flexibility offered by cheque payments and mistrust the security of alternatives such as online banking.

“We believe the intention to phase out cheques in 2018 is too early.  As alternative methods grow, an appropriate date may come when the rural community fully accepts the phase out of cheques, but this is not wanted or justified in the immediate future.”  

Notes to Editors

Ends

Contact Bob Carruth on 0131 472 4006

 

 

Date Published:

News Article No.: 119/11


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