A woman from Cornwall was forced to travel almost 100 miles to deposit a cheque from HM Revenue and Customs (HMRC), highlighting the growing difficulties faced by rural communities due to bank branch closures.
Cheque Deposit Woes
Annabel Yates, from Crackington Haven, received a £900 cheque from HMRC but found she could not deposit it online because the cheque lacked perforated edges and would not scan. She then attempted to deposit it at her local post office, only to be informed that Lloyds Banking Group customers could no longer use Post Office cheque services since the service was discontinued in January.
With no other option, Ms. Yates made a round trip of nearly 100 miles to a Lloyds branch in Truro. She described the bank's policy as "disenfranchising the rural population" and criticised the assumption that everything can be done via an app, calling it "very backwards thinking."
Bank's Response
Lloyds Banking Group stated that customers can use its app to pay in cheques, visit any Lloyds, Halifax, or Bank of Scotland branch, or use its freepost cheque deposit service. However, Ms. Yates expressed concerns about sending a cheque of that value through the post, fearing it might not reach its destination.
A HMRC spokesperson noted that most customers can request refunds via bank transfer using their personal tax account or the HMRC app, and the majority of repayments are now issued this way.
Broader Context
This incident occurs against a backdrop of widespread bank branch closures across the UK, with banks citing the shift to online banking. Campaigners argue that this ignores the needs of those who cannot use digital services or rely on face-to-face support.
The Treasury has launched a review of access to face-to-face banking, led by Richard Lloyd, former Which? director and ex-board member of the Financial Conduct Authority. Economic Secretary Lucy Rigby emphasised the importance of banking services and stated that the government will act quickly to legislate where evidence shows it is needed.
Rocio Concha, director of policy and advocacy at Which?, described the loss of face-to-face banking as a "serious problem," while Caroline Abrahams from Age UK welcomed the review, noting that many older people struggle when their local branch closes.
