Fears of a ‘trek for miles’ just to find cash machine
CONSUMER group Which? is warning against an industry move to curtail the number of cash machines countrywide.
This Wednesday, Link, the country’s largest network of cash machines, will confirm the fees operators will be able to levy when a customer of a competing bank uses one of its holein-the-walls.
It is likely the charge – paid by the bank, not the customer – will come down from an average of 25p to 20p over a period of four years with the first cut of 0.7 pence taking effect as early as June. The reduction is likely to result in independent cash machine operators scaling back their networks as revenues drop.
But Which? believes any decision by Link should be reviewed by the Payment Systems Regulator before it is introduced.
Gareth Shaw, money expert at the consumer group, says: ‘Link’s proposals could leave consumers facing an uphill struggle to access the cash they need, trekking miles to machines. Consumers are still reliant on the free-touse cash machine network so the regulator must conduct a thorough review to ensure the needs of users are protected.’ Earlier this month, the regulator assured Nicky Morgan, chairwoman of the Treasury Select Committee, that it would intervene if consumers lost out from Link’s actions.
On the eve of Link’s announcement, Which? has produced research indicating that 80 per cent of consumers are reliant on easy access to a free-to-use cash machine so as to carry out their everyday needs.
There are some 55,000 free-to-use cash machines nationwide. Link believes some City high streets are awash with them and they need thinning out to ensure the network’s overall profitability.
Although the charge per machine will fall, Link has promised to provide a bigger subsidy – of up to 30p – for operators in areas where the withdrawal of their machines could result in the immediate community facing financial exclusion.