A number UK fee-charging cash machines could be shut down for failing to adequately warn customers they will be subject to banking charges for cash withdrawals.
The cash point network LINK has investigated all fee-charging ATMs in the UK to check whether they have fallen in line with new banking rules introduced in 2005.
The new requirements mean that all fee-charging ATMs must clearly display three warnings that customers will have to pay a banking charge to take money out.
One warning must be outside the machine, the other on the ATM screen before the credit card or debit card is inserted and the other should be displayed after the banking transaction is finalised.
Following two surveys of the UK's ATMs, LINK found that some of Travelex and TRM's cash points were not yet fully compliant with the new warning guidelines.
The two companies now have ten days to rectify the problem or the machines will be disconnected from the network.
However, Edwin Latter, the scheme director for LINK ATMs said that most LINK members have made "considerable effort" to ensure their cash points display adequate warnings over banking charges.
LINK's efforts to ensure consumers are better informed follow a nationwide debate on the hidden banking fees charged when withdrawing money. With withdrawals often costing between £1 and £2 each, the charges are said to hit those on lesser incomes the hardest, as they are more likely to withdraw small amounts of cash on a regular basis.
Cash points to shut down over failure to display banking charges
Financial Services > e-banking > Banking news
Cash points to shut down over failure to display banking charges
Tue, 11 Apr 2006
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