Attack on bank machine charges backed

HeadLine: Attack on bank machine charges backed

Daily Record, 24/02/2000, p6

CONSUMER watchdogs have backed a report condemning banks who charge
customers for using cash machines.
A report prepared for the Treasury by Don Cruikshank, chairman of the
Banking Review Team, is highly critical of the controversial charges.
He condemns them for allowing an “extremely high” mark-up in the cost
of automated transactions.
In a BBC Watchdog programme to be shown tonight, the leaked report
claims there is “an overwhelming” case for change.
The Scottish Consumers’ Council last night urged those banks imposing
charges to scrap them immediately. And they praised Scots banks for not
imposing them.
A spokeswoman said: “So far, the Scottish banks have not gone down this
road and that has to be applauded.
“But many of the banks that do charge have customers in Scotland and it
is just not on that they are paying these charges.
“If Scottish banks decided to follow suit, then we would expect the
Scottish Parliament to take the issue up as it goes against every
social inclusion policy.
“In particular, these charges hit low-income groups.”
The cost to a bank for each “hole in the wall” withdrawal is just 29p.
But Barclays have proposed that non-customers pay a pounds 1 surcharge
for using the bank’s machines.
And some institutions impose a penalty charge of pounds 1.50 on their
customers using other banks’ machines.
That means if non-Barclays customers use one of their machines, they
could pay pounds 2.50 for the privilege.
Eddy Weatherill, chief executive of the Independent Banking Advisory
Service, said: “This report highlights the appalling scale of the
mark-up. It is scandalous.”


Categories: Daily Record articles

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