Banks slammed over ATM charges

Fee-charging cash machines need better labelling to prevent people being caught out, MPs have warned.

16:58 31 March 2005

Fee-charging cash machines need better labelling to prevent people being caught out, MPs have warned.

The treasury select committee said that while progress has been made in making people aware that they will be charged when they use some ATMs, more work must be done.

It highlighted the particular impact charges had on the less well off, as they are most likely to make small withdrawals often - being charged each time.

"Currently, many charging machine operators are not being straight and fair with consumers," said committee chairman John McFall.

"They must act in a responsible way to ensure customers can make an informed choice about which cash machines to use."

Consumers are currently paying 140 million a year to access their own money, a trend Mr McFall described as "very worrying".

The report also expressed concerns that as more free ATMs are replaced with fee-charging ATMs, some communities could lose access to free machines altogether.

There was particular concern over the number of charging cash machines in post offices, given the increasing number of people who have benefits paid into basic bank accounts, where the recipient is more likely to use cashpoints.

"Banks need to ensure that their commitment to free machines extends beyond their branch network," Mr McFall added.

"They should think carefully about the effect of their policies when closing or selling free machines that would deprive communities of free access to cash withdrawal

"Good access to non-charging machines should be available to all consumers. It's unfair that some people may be forced into paying 1.50 every time they make a withdrawal."