‘Scotland worst region affected by changes to ATM fees’

Rutherglen and Hamilton West MP, Ged Killen, said that the move threatens the viability of 30,000 - 45 per cent - of the UK’s free to use ATMs.

He has written to the government’s Payment Systems Regulator, asking for a full market review of ATMs following LINK’s plan to cut the fees paid to cash machine operators.

LINK, is the UK’s biggest ATM network, and the decision to reduces fees paid to banks and other card issuers when a bank card is used at a free ATM, could also lead to more cash machines charging people to access their money.

Mr Killen said: “I have written to the Payment Systems Regulator (PSR), the Government regulator which oversees ATMs pressing them to conduct a full market review following LINKs decision to cut the interchange fee.

“Scotland is expected to be one of the worst regions of the UK affected by LINK’s decision. There are already more cash machines in one corridor in the House of Commons than on the whole of Cambuslang Main Street in my constituency. I do not believe the public will accept any further reductions.

“Following the most recent round of bank closures by RBS and now this decision from LINK, I am concerned that the loss of financial infrastructure on our high streets threatens to leave many people across the country excluded from free and easy to use financial services.

“Benefit claimants, the self-employed and those who rely on cash will be most affected by these changes. It can cost as much as £2.99 per withdrawal and this places an extra cost burden on those who predominantly use cash.”

He added: “I am greatly concerned about how LINK carried out its consultation leading to the cut in the fee. There was no public consultation meaning that the voices of those affected by any reduction in the number of free to use ATMs was ignored.

“LINK chose primarily to consult its own members. As LINK members are predominately large banks and card issuers who will see the fees charged to them decrease as result of the changes, I have concerns about a potential conflict of interest.

“Considering the widespread concern raised regarding LINK’s decision, I would encourage the regulator to show its teeth and engage in a full market review of the effects of these proposed changes.

“Many ATM providers will be taking financial decisions now in light of LINKs changes and will not wait until the fees are cut in July, the Government and the regulator must act quickly to prevent the UK’s ATM network from being desolated and parts of Scotland becoming cash machine deserts.”