Cash machine climbdown

By NEIL SIMPSON
Updated:

 

Banks are to remove controversial 'disloyalty fees'of up to £1.50 for customers who use a rival banks' cash machines - though other charges for cash withdrawals may rise.

The banks say that from July they will outlaw double charging, when people are charged by their own banks for a cash withdrawal and by the bank operating the cash machine used for the transaction. But they refuse to say that the overall cost of using cash machines will fall.

The move to outlaw double charging was welcomed by Stephen Byers, secretary of state for trade and industry, as: 'A step in the right direction.' He said his department would continue to keep the pressure on banks to keep their other charges in check.

Critics fear this may not happen. Link, which represents the main banks and building societies and made Tuesday's announcement, admits that its members will be able to charge non-customers for using cash machines from January 1, 2001. There is no agreed upper limit for these fees, though they will have to be disclosed to cashpoint users before the transaction takes place, to allow them to change their minds.

Which cashpoints charge me for my own money?

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