NATIONWIDE CALLS ON BANKS TO PLEDGE TO KEEP FREE ATMs

15th February 2006

The day before a House of Commons debate* on charging cash machines, Nationwide has called for the financial services industry to join it in protecting consumers by committing to a “Pledge to Keep Free ATMs”.  This year UK consumers will pay £250m to withdraw their own money from charging cash machines and the Society believes that the future of a free network is under threat.  Nationwide has therefore written to the Chief Executive of each LINK-member bank and building society asking them to commit to the pledge.

Pledge to Keep Free ATMs
1. All bank and building society ATMs should be free to use
2. Free ATMs should have a standard “free” green sign so that consumers can see at a glance whether or not they will be charged
3. Banks and building societies should not sell off their free ATMs

There is a need to protect the UK’s free cash machine network and by signing the pledge, organisations can make their commitment real, public and meaningful.

The number of charging cash machines in the UK has rapidly grown from virtually none at the start of the decade to 24,000.  Consequently, the proportion of UK machines that now charge has reached 43%.  This has occurred despite strong public opposition to paying for withdrawals: 93% of British adults believe that it is unacceptable to be charged to withdraw their own money from cash machines**.

The Treasury Select Committee report on Charging Cash Machines in March 2005 expressed “…serious concerns about the trend towards replacing free cash machines with ones that charge...” and they concluded that “…if the trend continued, some communities may lose out on free access to cash altogether”.  Nationwide believes that the future of free cash machines away from branches is at risk.

Stuart Bernau, Nationwide Executive Director, said:  “Public opinion is overwhelmingly against charges.  Consequently, Nationwide is calling on banks to do the right thing and protect consumers by committing to keep free ATMs.”