Consumers are being charged as much as £5 for taking their own money out of ATMs, costing them a whopping £140m each year, warns Which on the day it gives evidence to the Treasury Select Committee.
To add insult to injury, the majority of consumers are completely confused about whether they are being charged or not. A recent Which? survey shows that over three-quarters of people do not know whether they will be charged for withdrawing their cash at an ATM or do not properly understand when they will be charged. Banks are re-introducing charging ATMs through the back door. Sooner or later free machines will begin to disappear. Which? welcomes the Treasury Select Committee raising this critical issue in time for action to be taken, and is proposing that a standardised labelling system be introduced to ensure consumers are aware of the charges. Which? will also urge the Treasury Select Committee to make sure that the following safeguards remain in place and are adhered to: - ATM charges do not encroach on consumers' free access to their own money
- The machines are clearly labelled, showing if, and how much, people will be charged
- Charges are fair and reasonable and capped to protect vulnerable consumers.
Laurence Baxter, senior policy adviser, Which?, said: "The present labelling on cash machines is clearly not good enough. Which? has proposed a standardised badge clearly showing charges. "Which? also feels a charge of £1.50 per withdrawal is grossly disproportionate to the true cost of the transaction and is calling for charges to be capped. "Which? is also concerned that consumers will be forced to pay, regardless of labelling. If other banks do as HBOS did this year in selling off ATMs, free ATMs may quickly become something of the past." Financial News Feeds provided by OneCompare.com
Date published: 12/24/2004 12:00:01 AM
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