The return of cheque guarantee cards?
Published 17 November 2011
Could cheque guarantee cards be set to make a comeback?
The cheque guarantee scheme, which ensured that cheques up to £50 or £100 were honoured even if the issuer didn't have enough money in their bank account, was abolished in June 2011.
However, according to the BBC, the Payments Council - the body which oversees payments strategy - is reviewing the system, which could lead to the return of cheque guarantee cards.
A Commons Treasury Committee has said there may be a case for the scheme, or something along similar lines, to be brought back, after concerns were raised that shops and other businesses may be less likely to accept cheques without it.
The cheque guarantee - which was identified by a hologram of Shakespeare on the back of credit/debit cards - meant a cheque was honoured by a bank even if an account didn't have sufficient funds. However, since the system was scrapped, businesses receiving payment by cheque have no such guarantee.
The Payments Council said a review of cheque guarantees was already under way - with results expected to be available by the end of the year.
A spokesperson for thinkmoney commented: "Some people find paying by cheque easier than going to the cash machine or making payments online. Many of these people would really welcome the return of cheque guarantee cards - which could make managing their finances more convenient."
If you're looking for a guarantee that your bills and other important financial commitments are paid on time, in the absence of cheque guarantee cards, there are other options to ensure your payments are made. The thinkmoney Current Account, with its team of Money Managers and in-built budgeting service, can give you the confidence that all your essential outgoings are covered nonetheless.