Grey Power plans campaign to stop banks removing cheque services
Sunday, 4 April 2021
Grey Power is looking to partner with others on a campaign forcing banks to keep cheques services open for senior citizens fast becoming outcasts in a digital world.
All major banks were phasing out cheques and Grey Power National President Jan Pentecost said it loomed as the organisation’s number one issue in 2021.
“It’ll leave many of our members, who aren’t digitally savvy, with no way to pay their accounts.
“It is going to be a hot topic this year and we are putting a case together, I’m quite happy to call it a campaign, to stop that from happening and to find some other options.”
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Pentecost said she understood older people were becoming “anxious and stressed” about how they were going to manage their finances.
“So we want to work with other groups, charities and NGOs who also get their funding via cheques, to raise this issue higher.”
One of those could be the Fundraising Institute of New Zealand, which said people who donated to charities were older and paid via cheque.
It said some charities received up to 90 per cent of their income by cheque.
Pentecost said phone banking and direct debit services were alternatives but she preferred regional banking hubs, which were being trialled at the moment.
Councils were being forced to follow the banks’ lead and phase out cheques too.
Waipā District Council announced it would no longer accept cheques from April 30, one month ahead of ANZ which would stop on May 31.
The council’s finance manager Sarah Davies said the number of customers using cheques had declined from 11,000 in 2015, to 3975 in 2020.
“We will be thorough in how we communicate this change to ensure all suppliers, ratepayers and customers are informed and are aware of the other payment options,” Davies said.
“Our frontline team and outreach librarians will also be available to assist customers one-on-one.”
Davies said by the end of August, no major banks would issue or accept cheques, that included the council’s main bank ASB, in Te Awamutu.
Grey Power Te Awamutu President and Waipā district councillor Hazel Barnes said some people had made the transition to phone or online banking but many others would struggle.
“It’s to do with the fear of something going wrong with technology, they also feel it’s an invasion into their lives because it’s something they haven’t had to do before.
“I can understand the bank’s side of the issue but I, like many other Grey Power members, don’t understand this madness over technology, we’re happy to live without it.”
Barnes said she understood ASB in Te Awamutu had been approached to see if it would continue to accept cheques from people using other banks, like a hub, to keep the service going.
“It’s not the council doing this, it’s the banks forcing them to follow. We just have to make sure we have plenty of help in the community to set up phone banking and other options for people.”
In a statement, ASB’s Executive General Manager Retail Banking, Craig Sims, said cheques now account for less than 1 per cent of ASB payments.
But the bank was working with customers who still used cheques to help them with other payment options.
“We’re also hosting free face-to-face Better Banking workshops to help our customers learn about digital and phone banking and how to stay safe online.
“Te Awamutu customers can speak with their local branch or register their interest online for a workshop, where we sit down and support customers with online banking basics, how to identify fraud and scams, as well as practical tools and advice.”
ASB customers aged 65 and could also use a dedicated phone line, 0800 272 119, or visit a branch during “priority hour”, 9am-10am.
Sims said the bank accepted cheques from other banks and would continue to do so up until three business days before that bank stops cheques.
“We recommend customers not with ASB confirm cheque exit dates directly with their bank.”