ATM Charges Come Under Scrutiny

Less than five years ago almost all UK cash machines were free, but currently one in every three machines now charge. MPs on the Treasury Select Committee are expected to examine the size of the fees charged and whether poorer consumers are paying too much, Citizens Advice, Which? and National Consumer Council have also been requested to attend. There are more than 50,000 ATMs in the UK, with almost 20,000 machines charge a fee to use. Recent research from Nationwide building society found that the number of fee charging ATMs grew by 29% during the first seven months of 2004, and at the same time, the number of free machines grew by just less than 0.5%. With fee charges typically between £1.25 and £1.75 a transaction this becomes a huge revenue source for the companies (poviders) involved. Providers such as Moneybox, Cardpoint and Hanco charge consumers up to £140m a year in total to use their cash machines often located in petrol stations and convienence stores. Providers will be requested to appear at later hearings of the Committee.