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Dáil Éireann díospóireacht -
Tuesday, 5 Nov 2002

Vol. 556 No. 3

Written Answers. - Departmental Payments.

Willie Penrose

Ceist:

298 Mr. Penrose asked the Minister for Finance the position whereby a cheque is made payable to a taxpayer from his Department or the Revenue Commissioners and that person has no bank account; the way in which that person can deal with that cheque; if the Revenue Commissioners would be prepared to pay cash which in this case is of a small magnitude of less than ?100, where such a person does not have a bank account and where it appears that it is difficult to get the cheque changed in such circumstances; and if he will make a statement on the matter. [20438/02]

It is the general practice on the part of banks that crossed cheques be lodged to accounts. This is to ensure that cheques which are crossed go directly from the payer to the payee and guards against fraud in the transfer of cheques via intermediaries. Whereas previously it was common for shops and other commercial enterprises to cash cheques, many – but not all – are now choosing not to do so for security reasons and so as not to expose themselves to fraud and loss.

When this change in banking practice was initially introduced in late 2000, my Department was concerned at the effects of the change on some persons receiving payments from the State, especially payable orders from the paymaster general's office and, in meetings with representatives from the banks, the banks indicated that they would continue to honour existing and established local arrangements, especially in regard to welfare recipients.
I have no information on the number of taxpayers without bank accounts who receive payments from my Department or from the Revenue Commissioners. I understand that it is not feasible for the Revenue Commissioners to provide for cash payments. However, if a taxpayer experiences difficulties he or she should contact Revenue which may be able to assist him or her in having payment cashed by the banks.
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