Isle of Man Bank has apologised for any confusion caused after it told some customers that it will no longer accept cash and cheque payments.

The situation emerged after Wi-Manx customers were informed that they couldn’t pay their bills by cash or cheque.

Its notice to customers read: ’In view of changes to the UK and Isle of Man cheque clearing system and taking into consideration the new ring fencing legislation, we are having to make changes to your account.

’We will no longer be able to accept cheque payments. If you pay your account by cheque, all cheques will be rejected with immediate effect.

’We will no longer be able to accept cash payments and all cash will be rejected with immediate effect. The means of making payment of your account will have to be made by direct debit, electronic payment or credit card.

’We are sorry for any inconvenience caused by this new bank regulation.’

Wi-Manx customer Joe Duffy believes the move is part of the ’insidious’ restriction and control of island residents’ individual rights to conduct normal everyday financial transactions.

He said: ’Ring-fencing was initially meant to protect and help Joe Public by preventing casino-style behaviour.

’But it has resulted in far more personal identity information being demanded by lending institutions when parting you from your money.’

Wi-Manx said in a statement: ’Wi-Manx were notified by the Isle of Man Bank that they were making changes to cash and cheque facilities.

’The bank explained they were making these changes in view of the changes to UK cheque clearing and the new "ring-fencing" legislation due to come in to force.

’Unfortunately and as a result of the changes made by the bank, Wi-Manx are no longer able to accept cheque and cash payments from our customers.

’Our customers are able to make payment by direct debit, via online banking or by contacting our accounts department and making a payment via card.’

An Isle of Man Bank spokesman said: ’In November we wrote to our customers to let them know that as the majority of our Cash Management Account customers have stopped us­ing the account for foreign currency cash transactions, we’ll be removing paying cash in, taking cash out and overdrafts for this type of account from February 1.

’We understand there has been some confusion caused by this.

’For Cash Management Accounts only it will no longer be possible for us to offer cheque services including paying in. This does not affect other accounts held with Isle of Man Bank. We’re sorry for any confusion this has caused.’