Scottish Labour MP to introduce bill to ban ATM charges

The bill seeks to ban ATM charges, protect access to free cash withdrawals and introduce an enforceable access to banking standard.

The Banking (Cash Machine Charges and Financial Inclusion) Bill seeks to protect access to cash and banking services where demand remains for them.

Scottish Labour said that while the bill accepts that the world is becoming more digital and increasingly financial activity is moving online, it cited recent evidence from consu,er watchdog Which?, the Federation of Small Business and a special inquiry into ATM use by the Scottish Affairs Committee as highlighting that demand for cash and physical financial infrastructure remains, and that these services are important to everyday life.

Speaking ahead of the introduction of the bill, Labour MP for Rutherglen and Hamilton West Ged Killen said: “I accept that financial services are moving online, however from the public reaction to a reduction in free to use ATMs and the current bank branch closures it is obvious that these services are still valued and deserve protection.

“By banning ATM charges and introducing stricter rules around access to banking we can focus on how we best provide these services where they are needed and for free. No one should have to pay to access their own money.

“We must act before we sleepwalk into a desperate situation. In the United States a similar change to how ATMs are funded has made it the case that the average ATM charge is almost $5 per withdrawal.

“My concern is that ATMs which charge a fee will become the norm on the pathway to a cashless society. This will exact a harsh penalty on rural and deprived communities as well as the vulnerable and the elderly.

“When ATMs and bank branches disappear, lending to small businesses decreases, footfall on the high street goes and the risk of financial exclusion grows. If we are serious about financial inclusion and economic development outside metropolitan areas, we should seek to protect the services people rely on.”