Lloyds bank reverses Post Office rule amid criticism

Lloyds Banking Group reversed the controversial decision after widespread criticism. <i>(Image: Yui Mok/PA Wire)</i>
Lloyds Banking Group reversed the controversial decision after widespread criticism. (Image: Yui Mok/PA Wire)
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A major high street bank has U-turned on a decision to scrap cheque deposits at Post Office branches.

Lloyds Banking Group will now allow customers to pay in cheques at Post Office locations until 2030, following public and political pressure.

The original decision to withdraw the service, affecting Lloyds, Halifax and Bank of Scotland customers, prompted criticism from rural communities and older customers who rely on the Post Office for banking.

Lloyds was the only major UK bank to remove the option, arguing that cheque use had declined and most customers had switched to digital or branch-based alternatives.

However, the move was widely opposed, with 121 MPs backing a campaign urging Lloyds to reconsider.

A spokesman for Lloyds Banking Group said that while most customers use digital and branch-based options, the bank recognises that some people want greater choice and access to face-to-face services.

Critics of the original decision argued that removing the service would further restrict access to banking in areas where branches have already closed.

The reinstated service took effect from September 1, allowing Lloyds, Halifax and Bank of Scotland customers to once again deposit cheques at participating Post Office branches.

Customers can also use Banking Hubs for cheque deposits.

The move is expected to offer continued support to people in rural areas, older customers and small businesses who still rely on cheques and in-person banking services.

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