31-07-03

Cash machine decision is only “a step in the right direction” says Barrett

Scottish Liberal Democrat MP, John Barrett, today welcomed the decision to introduce clear warnings about their charges imposed for withdrawing cash from convenience cash machines but warned the move was only a “step in the right direction”.

The LINK group of high street banks has announced that from next April, clearer warnings will be given about the charges which are imposed on withdrawals from any of the 11,000 convenience cash machines across the UK.  The warnings will involve labelling of the machines and earlier on-screen notices. Approximately 25% of the entire cash machine network now charges its customers and costs people an estimated £115 million every year.

The decision today follows a concerted parliamentary campaign and the tabling of a House of Commons motion which attracted the support of almost 100 MPs of all the main political parties, including Mr Barrett

Commenting on the announcement, John Barrett said:

"This is a very welcome announcement and should better protect customers from making withdrawals without knowing in advance the charges that will be imposed.  However, the decision masks the real issue which is that these charges should not exist in the first place. 

"There has a huge increase in the number of these so called 'convenience' machines which has resulted in millions more people being charges ridiculous sums for simple cash withdrawals.  Those on lower incomes get hit the hardest with 15% fees for withdrawals of only £10.

"The practice is now costing the public hundreds of millions of pounds every year despite many banks showing they can operate cash machines without imposing added charges.

"Although today's announcement is a good one, it is only a step, a small one at that, in the right direction." 

ENDS

               
Notes to Editors

1. John Barrett is one of 90 MPs from all the main three political parties who have supported Early Day Motion 1284 which states:

That this House condemns the sharp rise in the number of cash machines which charge customers for removing their money; notes that convenience machines placed at locations such as supermarkets, pubs, post offices, factories, amusement parks and service centres charge customers between £1.25 and £1.50 for each transaction, with the number of machines charging rising from 3.2 per cent. in February 2000 to 24.5 per cent. in February 2003; further notes that overall this is costing an estimated £115 million a year hitting those on low incomes hardest; and calls on the firms operating the machines to remove these charges.

2. 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