Insurance News Archive

Cheques 'are important payment method for buy to let insurance holders'

Posted by Dan Winters

Buy to let insurance policyholders would be hampered by the removal of cheques as a payment method, according to an expert.

Alan Ward, chairman of the Residential Landlords Association, has expressed concern at the announcement from the Payments Council Board that October 31st 2018 is the target date for the closure of central cheque clearing.

He joined the Federation of Master Builders, which also condemned the decision, saying that consumers should decide the long-term future of cheques, not banks.

Mr Ward commented that cheques are a secure and generally non-negotiable form of payment, making them useful for large sums of money.

"Currently the alternative would be to take cash which has a security risk to the tenant and landlord when carrying large amounts on their person," he added.

Cheques also come with a proof of receipt in the form of a bank statement, whereas this guarantee is not present with cash, he continued.

21 Dec 2009