Lloyds Banking Group has been accused of "disenfranching rural communities" with a recent branch rule change that is impacting customers' ability to deposit cheques.
The financial institution has found itself in a row after a woman was unable to deposit a £900 HM Revenue and Customs (HMRC) cheque while accessing the financial institution's services at the Post Office.
Despite being a customer, Annabel Yates was not allowed to hand over the large sum at her local Post Office branch, and also could not deposit the unscannable cheque online due to its perforated edges.
Ms Yates, from North Cornwall, was told at her local branch that Lloyds Banking Group customers cannot pay in cheques through the Post Office any longer.
Lloyds Banking Group is under fire
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This comes after a rule change from the banking group back in January, with customers now being told to deposit money through either Lloyds' apps, one of the banking giant's physical branches, or using a freepost deposit service.
However, Lloyds Banking Group's rule change comes after sweeping branch closures across UK high streets, with consumer champion Which? determining that 6,000 locations shut down between 2015 and 2024.
According to the banking group, which is made up of Lloyds Bank, Halifax, and Bank of Scotland, cheque usage in Britain has been in a sustained decline, making up around 0.1 per cent of payments in 2024.
Speaking to the BBC, Ms Yates suggested the high street bank's policy change risks "disenfranchising the rural population" and called for a U-turn.
Bank branch closures are continuing at an 'alarming rate', according to Which? | GETTY LATEST DEVELOPMENTS
Ms Yates has claimed the policy risks 'disenfranchising rural communities'
| PAShe explained: "I think the bank's theory is that everything could be done on an app, and that's just not always the case. Back in the day, Lloyd's ethos was to make banking easy. I think this is a reversal of that."
Ms Yates was not a fan of the freepost option for deposits as she "did not want a cheque in the post for such a large amount of money when you are not sure it would actually reach its destination".
A Lloyds Banking Group spokesperson said: "Customers can use our app to pay in cheques, visit any Lloyds, Halifax or Bank of Scotland branch, or get in touch with us about our freepost cheque deposit service."
The financial institution cited that Lloyds updated its terms and conditions for depositing cheques last year, which informed customers that they could not deposit cheques in Post Offices.
Lloyds Banking Group consists of Lloyds Bank, Halifax, and Bank of Scotland
| GETTYEarlier this year, Lloyds confirmed plans to close another 95 bank branches this year in a further blow to customers.
Jenny Ross, Which? Money Editor, said: "This announcement is a reminder that branches are still under threat and it’s clear that banking hubs will play a big role in how we manage our money.
"However, not all hubs provide the same services, meaning some customers can still be forced to travel long distances to access the services they need.
"Given the importance of banking services to local communities, the government and banking industry should work together to plug gaps so consumers can rely on hubs for their banking needs and be ready to increase the target of 350 open hubs by the end of this parliament if needed."