Taskforce probes Cash machines

08 May 2006

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The number of fee-charging cash machines in the UK has soared in the last few years, bringing the number of machines that charge fees up to 40%, each charging around £1.70 per withdrawal.

Now, a taskforce has been set up, to look into cash machine charges, and the quality of signs used to warn people that they will be charged to access their money. The Taskforce will be headed by Treasury Select Committee Chairman John McFall, and will involve input from banks and consumer groups.

The taskforce is to report back to ministers in six months with recommendations for action on cash machine transparency and on the impact of charges on financial inclusion.

The action has been welcomed by Nationwide, who have been campaigning for some time to protect the free cash machine. Halifax have also welcomed the move, and have announced that a further 300 free cash machines are to be added to it’s network.

Fee charging cash machines may now face having to clearly state their charges before customers begin a transaction.

McFall said: "I see this as good opportunity to take stock of the progress made in the year since the Treasury committee report on ATMs and to identify areas in need of further improvement."

His comments follow a report last year by the Treasury select committee, which called for cash machines to be labelled to show from a distance whether there is a fee for withdrawals.

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