17-08-04

Government must protect customers over cash machine charges – Barrett

John Barrett, Liberal Democrat MP for Edinburgh West, today called on the Government to better protect customers from being charged withdrawal fees at UKcash machines.
 
Over the last 3 years, there has been a substantial growth in the number of cash machines charging customers for the withdrawal of money. Research produced by the Association of Payment Clearing Services has predicted that by the year 2012, 3 in every 4 cash machines will charge customers for making a withdrawal.
 
Mr Barrett is one of over 50 MPs who have signed a parliamentary motion criticising the charging for withdrawals.  The motion also calls on the Government to ensure visible signs are made available at each cash machine that does charge a fee so that people are aware of the extra cost.
 
Commenting, John Barrett MP said:
 
"All too often, it is those on lower incomes who are hit the hardest by cash machine charges.  For those people withdrawing even just £10, the £1.50 extra which these cash machines charge marks a ludicrous 15% fee.
 
"In the long term, I would like to see cash machine charges scrapped altogether.  After all, if some banks can operate without charging, I do not see why others have to.  However, in the short term, the Government has a duty to ensure those banks that do charge give clear, visible and obvious warnings on their cash machines so that people are fully aware of the charge before they make a withdrawal."
 
ENDS
 
Notes to Editors
 
• John Barrett is one of 51 MPs from all the main three political parties who have supported Early Day Motion 1404 which states:
 
That this House notes the increase in the numbers of financial institutions that are charging for cash withdrawals at Automatic Teller Machines (ATMs) adversely impacting on those on lower incomes; further notes that, only five years ago, almost all cash withdrawals at ATMs were free, yet, according to the Association of Payment Clearing Services, in eight years' time 75 per cent. of all ATMs in theUKwill charge a fee for withdrawals; calls upon building societies and other mutual institutions who offer the service free to advertise more widely the fact; and calls upon HM Government to ensure that those institutions which do charge ensure that the required warning is visible and obvious to those making the transaction.

• More information surrounding cash machine charges and statistics can be found from the Nationwide at www.nationwide.co.uk/mediacentre/PressRelease_this.asp?ID=432