Closure of tens of thousands of free ATMs to be investigated by Scottish Affairs Committee

The Select Committees investigation will be the first major gathering of evidence by Parliament since the funding formula for free to use ATMs was changed by the LINK network.

LINK is the membership body that sets the funding for free to use ATMs.

In February, it announced a reduction in the interchange rate fee by 20 per cent. This is the fee that is charged to card issuers when an ATM is used and forms the basis of how free to use ATMs are paid for. The announcement sparked fears that tens of thousands of ATMs could close across the UK and wiped millions of pounds off the value of Britain’s ATM operators.

The special session will gather evidence from consumer bodies, ATM operators and regulators and will be the first detailed parliamentary scrutiny of the changes in ATM funding.

Labour MP Ged Killen MP, who is a member of the Scottish Affairs Select Committee, said: “This is excellent news. This will be the first major investigation into how LINKs decision will impact on the ATM network. As Scotland is thought to be one the worst areas effected by LINKs changes I am delighted it is the Scottish Affairs Committee which will be taking a lead on this.

“As a member of the committee the impact on communities and the vulnerable will be at the forefront of my mind when carrying out the investigation.

“There are currently more free ATMs in one corridor in the House of Commons than on all of Cambuslang High Street in my constituency.

“LINKs changes threaten to make this situation a common sight across Scotland. It will be the most vulnerable and the poor who are impacted most as they face difficulties to withdraw cash without having to travel to their nearest free to use ATM or be forced to use one which charges.

“ATM operators have raised with me the potential unworkability of LINKs proposals to protect free to use machines in sub-urban and rural areas. These are the companies which install and run the UK’s ATMs and they fear that LINKs change to the funding formula will damage their business models and make many ATMs financially unviable, forcing them to start to charge.

“Some operators have already begun closing ATMs and putting others under review. This is despite assurances by LINK that the ATM network won’t be seriously damaged.

“You should not have to pay to access your own money, however ATIMA, the ATM industry body have warned that 30,000 or 45% of the entire free to use ATM Network could disappear. We could therefore see an increase in ATMs which charge or the loss of cash machines altogether from some communities.

“The regulator, the PSR (Payment Systems Regulator), has powers to intervene and says it will act if there is evidence that the integrity of the UKs ATM network comes under threat. Should the committee’s investigation find that ATMs in Scotland are at risk the PSR should consider using its powers to intervene to protect the public’s access to cash.”

“I have plans to introduce a bill at Westminster to protect communities in Scotland and across the UK against ATM closures if strong enough action is not taken.”