THE
HIDDEN COST OF USING A CASH MACHINE
Queue up in the post office and
get your money at no extra cost, or use some ATM’s and pay
a charge!
The Treasury Select Committee says
a third of cash machines are charging you to take out your own money
– at a cost of around £140m a year, Free ATM’s
outside a dwindling number of bank branches could be a thing of
the past MP’s have predicted – 1 person in 4 doesn’t
realise that they’re being charged – or what the charges
are! And oh what a row it’s all caused!
The Consumer Association Which says “it’s vital that
customers understand when they’ll pay and how much.”
The National Consumer Council says “. Lack of access to free
cash withdrawal facilities can be a huge problem for the poorest
in society and is another example of how ‘the poor may more’
for basic goods and services”
Philip Cullum, Deputy Chief Executive of the NCC says “Our
research shows that people on limited incomes prefer to manage their
money on a daily basis, and so make frequent, small withdrawals.
At a fee-charging ATM, a single withdrawal costs, on average, £1.50.
This means consumers withdrawing £50 a week in five £10
withdrawals, would pay over £30 a month in ATM fees. This
is catastrophic for low income consumers trying to manage on a tight
budget.”
The General Consumer Council for
N Ireland says we need
• The right to easy access to cash, free of charge, must be
protected
• Better signage to let people clearly know that there is
a fee for using a cash machine
• Early warning and clear warning systems before the transaction
begins - not at end
• A Code of conduct or revision of the Banking Code
• A review of Post office policy
Here in N Ireland the Post Office
told On Your Behalf
“There are 554 post office
branches in N.Ireland - 72 of these have an ATM machine. Of these
72 - 47 charge for transactions.
Where there is charging, our policy
is clear - there should be a clear sign next to the machine to advise
customers of the charge. We have been putting up clearer signs in
larger type in our branches in recent weeks and we also expect every
ATM to follow the LINK code so that during the transaction, there
must be a clear indication of the possibility of a charge, with
users having the option to abandon the transaction if they so decide.
We have insisted that charges are capped at £1.50.
Its worth remembering that at every
Post Office branch there is free access to cash over the counter
- using the Post Office Card Account, the basic bank accounts of
high street banks and building societies or through the nine partner
banks, whose customers can get free access to their bank accounts
at the Post Office counter. The Post Office is working hard to win
over those banks whose customers cannot at present get free access
to their money through our network of post office branches.”
So how can you avoid charges?
• Always check before you use a machine
• if possible use a machine you’re familiar with
• if possible use a cashpoint at a bank or get cash over the
counter
• use the cashback facility in shops or your debit card
• and if you’re at the post office check if the cash
machine makes a charge and if it does queue up at the counter
But there’s no denying
it - having a cash machine nearby is handy – but are people
prepared to pay for the convenience of a hole in the wall in an
area where there wouldn’t normally be one?
What’s your view on ATM charges? E
mail here
APACS
Association for Payment Clearing Services
Mercury House, Triton Court, 14 Finsbury Square, London EC2A 1LQ
Tel: 020 7711 6200
Financial Ombudsman
Financial Ombudsman Service
South Quay Plaza
183 Marsh Wall
London E14 9SR
0845 080 1800
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