MPs to probe fears 30,000 ATMs could go
Warning over free-to-use machines
THE demise of Scotland’s free cash machines is to be investigated by a Westminster committee.
Proposed changes to the way the network is funded have sparked concerns that thousands of ATMs could go.
LINK, the network responsible for more than 80 per cent of all UK ATM withdrawals, is planning to cut the fees it pays to cash machine operators.
This, it says, will help to ‘rebalance’ the availability of free machines. But LINK claims fees will be removed for some, helping to incentivise provision in rural and less affluent areas.
Westminster’s Scottish affairs committee is set to assess the impact of the proposals and how any cuts could be mitigated. MPs will also assess the consultation process carried out by LINK.
The Federation of Small Businesses has warned the move could result in the loss of thousands of free-to-use cash machines.
Labour MP Ged Killen is calling for a full market review of the plan, which he claims could threaten the viability of 30,000 – nearly 50 per cent – of the country’s free-to-use ATMs.
Yesterday he welcomed the committee’s decision to investigate, saying: ‘This will be the first major investigation into how LINK’s decision will impact on the ATM network.’
He believes poor and vulnerable people will face the greatest challenges by having to travel to find a bank machine or to use a free one.
Mr Killen added: ‘There are currently more free ATMs in one corridor in the House of Comtee
‘Won’t meet needs of consumers’
mons than all of Cambuslang High Street in my constituency. LINK’s changes threaten to make this situation a common sight across Scotland.’
He plans to introduce a Bill to protect free ATMs.
The Scottish affairs commit- will hold a one-off session. Committee chairman Pete Wishart said: ‘During our investigation over plans to close RBS branches, we noticed how important it was for local communities to have 24-hour access to cash that ATMs provide.
‘The changes announced by LINK ostensibly contain measures designed to protect rural communities and low-income areas.
‘However, there is a concern that they are designed to reduce costs to the banking sector and won’t meet the needs of consumers.’
LINK chief executive officer John Howells said the proposed changes would improve the ATM network. He added: ‘We don’t believe that any consumer should have to pay to access their own cash.
‘Even as more consumers turn to alternative payment methods, it’s vital that all communities have access to a free-to-use ATM.
‘Our recent changes are about improving the ATM network and making sure they’re in the right places where people need them, not concentrated in busy high streets in city centres.
‘We are strengthening our financial inclusion programme so that we can protect and enhance the ATM network, especially in remote and lesswell off areas.’