The report comes in the wake of increasing concern over the rising frequency of fee charging cash machines in the UK – up to 37% of all machines now compared to 0% in 1999 – and the potential implications for customers.
Currently the average cost for using the charging machines is GBP1.50, a cost that many customers feel is unfair. According to the report, GBP140 million is spent each year in the UK by people using the ATMs in question.
While the Select Committee paper stopped short of condemning fee charging ATMs, it did highlight the need for improving customer awareness of such services. Many charging machines currently only inform the customer that they will be charged just before they confirm their transaction; the report suggests that users should be informed before they even approach a machine through clear exterior labeling.
The report also suggested that some companies providing the charging ATMs deliberately misled customers by advertising free balance inquiries, leading some customers to think that all services were free.
Meanwhile, the Post Office came in for criticism for not providing enough free machines on its premises, while Link, which currently regulates the UK’s ATM network, also received negative attention.
Fee charging ATM providers hit back against the criticism saying that only 4% of transactions involve charging machines currently in the UK and that the majority were located in places where providers of non-fee machines would not offer their services.
