Lloyds Bank reverses decision with new rule now in place for customers

Lloyds Bank reverses decision with new rule now in place for customers The change comes after a major campaign A new rule is now in place for Lloyds Banking Group customers after the banking group reversed a controversial decision. Until the start of this month, customers were unable to deposit cheques into their accounts at Post Office branches. The decision sparked a national campaign, backed by 121 MPs. Lloyds Banking Group said at the time it scrapped the service that cheque usage was in decline. In July this year, Lloyds said it was in talks with the Post Office to reestablish the service. The group has now confirmed the service has returned. Joanna Bickersteth, postmistress in Cornwall, told the BBC : "I'm sure I speak on behalf of all the Post Offices - it just didn't make sense at all. It's just making it back to, as it should be. Banking should be easy for all." One hundred and twenty-one MPs from across the country wrote to Lloyds after it became the only major UK bank to stop customers paying in cheques at the Post Office. Ben Maguire, Liberal Democrat MP, said it was "fantastic news that Lloyds have relented after lots of pressure". Rebecca Smith, Conservative MP, said she was "really pleased" with the reversal of the decision and it was an "encouraging step forward". Lloyds Banking Group, which includes Lloyds, Halifax and Bank of Scotland, said most of its customers deposited cheques through its app, at branches and via its free post service. A spokesman said the service was reintroduced for customers on September 1, 2026. They said: “Cheque use continues to decline and most of our customers deposit them through our app, at our branches and via our freepost option. "While these services are working well, with many customers choosing these quicker, more convenient options, we recognise some customers want greater choice and, from 1 September, we made cheque deposits available through the Post Office and Banking Hubs, until 2030.”