Payments Council to be punished over cheque fiasco - Money - News |

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Payments Council to be punished over cheque fiasco

Payments Council to be punished over cheque fiasco

Category: Money

Updated: 20/07/2012
First Published: 19/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Government has said it will punish the Payments Council over its failure to find a replacement for cheque transactions.

The use of cheques has declined in recent years, although many people and businesses rely on them as a method of payment.

In 2009 the Payments Council announced that cheques would be scrapped by 2018, although following mounting pressure the plan was later abandoned.

Despite this, it has become apparent that no replacement for the cheque had been devised, angering the Government, who believe that the move was engineered to assist banks with no regard for customers' needs.

As a result, the Payment Council will lose its responsibility to govern UK banks' payment systems. Instead the Government will hand the power to the Financial Conduct Authority (FCA), one of the successors of the Financial Services Authority.

Chief executive of the Payments Council, Adrian Kamellard, welcomed the Government's decision stating the Council would still have an active and valid role. "This is borne out by the fact that the Treasury has entrusted us to deliver a new faster account switching process in September next year," he said.

"We are also on track with our work to help deliver mobile payments to customers across the industry and a clear future strategy for payments."

Find the best bank account for you - compare bank accounts

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.