Majority of older consumers still prefer to use cheques

Nearly three-quarters of people aged over 65 regularly usecheques, a new report from Age UK has found.

The report also found that many developments in personal bankingsuch as ATMs, reduction in bank branches and increase in internetbanking are not catching on with many older consumers. Nearly one infive of those over 65 often use other people to draw cash out forthem, while only 43 per cent said that using a cash machine in thestreet was their preferred method of drawing cash.

However, it is in the area of cheques that AGE UK expressed themost concern. UK banks plan to phase out cheques by 2018, while from30 June the cheque guarantee system will be brought to an end. Inessence, this means that any cheque cashed in the UK after this datewill not be guaranteed by the bank issuing the cheque.

Michelle Mitchell, charity director at Age UK, said, "Cheques arestill a popular form of payment. While we welcome the Government'scomments during the Treasury Select Committee on cheques last week,that it may 'intervene' to protect vulnerable consumers andbusinesses if no alternative to cheques was put in place before theywere withdrawn, it needs to go further. We are calling on theGovernment to recognise payment systems as an essential utility likeelectricity or water, so that everybody has a safe, accessible andaffordable way to pay."