Woman urges bank to consider rural communities after cheque deposit issues
Annabel Yates, a resident of Cornwall, has called on Lloyds Banking Group to "not forget" rural communities following difficulties she encountered when attempting to deposit a £900 cheque from HM Revenue and Customs (HMRC).
Yates was unable to deposit the cheque online because it lacked perforated edges and would not scan properly. When she visited her local post office, she was informed that customers of Lloyds Banking Group could no longer pay in cheques through the Post Office, as this service was discontinued in January. Consequently, Yates traveled 94 miles (150km) to Truro to access a bank branch.
Lloyds Banking Group stated that customers have alternative options to deposit cheques, including using its mobile app, visiting any branch, or utilizing a freepost deposit service.
HMRC and bank responses
HMRC clarified that its cheques are scannable and do not require perforated edges.
Yates, who lives in Crackington Haven, expressed her desire for the bank to "reconsider their policy," as she believes it "disenfranchises the rural population."
"I think the bank's theory is everything could be done on an app and that's just not always the case.
It's very backwards thinking."
She also mentioned being informed about the freepost option but was reluctant to send a cheque by post for such a significant amount due to uncertainty about its safe arrival.
"Back in the day, Lloyd's ethos was to make banking easy. I think this is a reversal of that."
Decline in cheque usage and local impact
Lloyds Banking Group, which encompasses Lloyds, Halifax, and Bank of Scotland, noted that industry data indicates a long-term decline in cheque usage, accounting for only 0.1% of all UK payments in 2024.
Joanna Bickersteth, postmistress at Marshgate Post Office near Boscastle, commented that Yates's experience is not unique, with many customers expressing "frustration" over the loss of the cheque deposit service at the Post Office.
She added that cheques remain "used a great deal" and that she continues to process them regularly, but the January service change has reduced "the facilities available to customers by taking away the post office element."
Bickersteth also noted that a new banking hub in Bude cannot cash in cheques as it operates as a Post Office facility.
Lloyds Banking Group's position and HMRC alternatives
The Lloyds Banking Group explained that it updated terms and conditions on some accounts last year and informed customers that cheque payments at the Post Office would no longer be accepted.
It stated:
"Customers can use our app to pay in cheques, visit any Lloyds, Halifax or Bank of Scotland branch, or get in touch with us about our freepost cheque deposit service."
An HMRC spokesperson said:
"Most customers can request a refund via bank transfer using their personal tax account or the HMRC app, and the vast majority of repayments are now issued this way."
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