WRITTEN QUESTION P-2751/02

by Michael Cashman (PSE) to the Commission

(24 September 2002)

Subject: Travellers Cheques

Is the Commission aware that, whilst euro Travellers Cheques are being promoted as a safe and sensible way of carrying one's holiday money, this is not the case in some countries, such as Germany and Majorca, where people have found that shops and businesses would not take them, claiming that they had not even seen them before? Moreover, is the Commission aware that even foreign banks demand a commission of 18-20 % on euro Travellers Cheques?

Can the Commission state what legislation and regulations are currently in place to protect citizens against such conduct on the part of business and banks and also on the part of agents such as post offices that strongly advise people to take Travellers Cheques notwithstanding? Can the Commission confirm that it will look into this matter and comment on whether it plans to take any action on this issue?

Answer given by Mr Bolkestein on behalf of the Commission

(16 October 2002)

A traveller's cheque is a private payment instrument issued by a financial institution which represents a sum of money. It can be used for purchases in shops, hotels, etc. or converted into cash at a bank or specialised agency.

It is a payment instrument which is not legal tender. This means in particular that no bank is obliged to accept a traveller's cheque. If a bank does accept it, it is free to set the level of charges for the service.

There is no specific Community legislation on cheques or traveller's cheques and the Commission does not intend to take action in this field.

The issues raised can be dealt with by means of general legislation. Advertising by issuers can be assessed in the light of the legislation on misleading advertising(1). Information on charges for using traveller's cheques comes under national legislation on advertising the price of services.

(1) Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising OJ L 250, 19.9.1984.