Finance Choices
Nationwide calls for free cash machine signs
Nationwide is stepping up its campaign against fee-charging cash machines today - by adding signs reading "FREE CASH WITHDRAWALS" to its ATMs.
The building society, concerned by a lack of "real progress" to protect consumers, and believing free cash withdrawals are under threat, has taken matters into its own hands.
Nationwide will become the first UK financial service firm to introduce at-a-glance signage to its machines and is calling on others to follow its lead.
"The industry has been dragging its heels over providing real clarity for consumers regarding cash machine charges. Consequently, Nationwide is taking action by implementing a straightforward solution to counter consumer confusion," said Stuart Bernau, Nationwide?s executive director.
"Green and red signs, which are visible at a glance, will be instantly recognisable and their introduction is supported by an overwhelming majority of people."
Halifax has already responded to the call, saying that all 2,700 Halifax and Bank of Scotland ATMs will feature green "Free Cash Withdrawals" signs, by the end of October.
Nationwide calculates that this year consumers will pay £200 million in cash machine withdrawal fees - up from £140 million last year.
It adds that while a few years ago almost every cash machine was free to use, now 42 per cent charge.
However, what Nationwide does not point out is that most of these machines are in places where there were no machines previously - and that the number of free to use cash machines in the UK is actually growing.
The major concerns over charging cash machines are that consumers are not always aware they will be charged to use them until it is too late, and that the charges hit the poorest the most - as they make small withdrawals often and their ability to travel to free-to-use machines is restricted.
Currently cash machine operators are required to:
The building society, concerned by a lack of "real progress" to protect consumers, and believing free cash withdrawals are under threat, has taken matters into its own hands.
Nationwide will become the first UK financial service firm to introduce at-a-glance signage to its machines and is calling on others to follow its lead.
"The industry has been dragging its heels over providing real clarity for consumers regarding cash machine charges. Consequently, Nationwide is taking action by implementing a straightforward solution to counter consumer confusion," said Stuart Bernau, Nationwide?s executive director.
"Green and red signs, which are visible at a glance, will be instantly recognisable and their introduction is supported by an overwhelming majority of people."
Halifax has already responded to the call, saying that all 2,700 Halifax and Bank of Scotland ATMs will feature green "Free Cash Withdrawals" signs, by the end of October.
Nationwide calculates that this year consumers will pay £200 million in cash machine withdrawal fees - up from £140 million last year.
It adds that while a few years ago almost every cash machine was free to use, now 42 per cent charge.
However, what Nationwide does not point out is that most of these machines are in places where there were no machines previously - and that the number of free to use cash machines in the UK is actually growing.
The major concerns over charging cash machines are that consumers are not always aware they will be charged to use them until it is too late, and that the charges hit the poorest the most - as they make small withdrawals often and their ability to travel to free-to-use machines is restricted.
Currently cash machine operators are required to:
- Show on the screen ? before customers insert a card ? how much they will be charged
- Increase the type size on warning stickers to 14pt and to place the stickers in places where they are more visible
- Include warning signs on posters or billboards outside shops that advertise cash machine services.
posted by Bruce Wayne at 10:39 AM
Nationwide calls for free cash machine signs
4 Comments:
A good idea but I can't see there being many ATM machines with these signs up the way things are going these days. Charging you to get your own bloody money out. Disgraceful!
I know what you mean anon. I mean you give them your money, they pay you pathetic interest rates, make billions each year in profit by investing our money and then fecking charge us to take it out!
Grrr
Usually in the US if you use your ATM card at your own banks ATM terminal you dont get charged. If you use it at a competitors terminal you usually get charged by the competitor terminal (like 1.50) and many times your bank (for example Wachovia in my case) will charge you another fee. There are also private ATM's, such as in a convenience store that will charge you 2 bucks sometimes.
I don't think they do it anymore, but First National Bank of Chicago (which Bank One bought) used to charge you a teller fee if you went to a teller for "ordinary" transactions. They really pushed you to use their ATM networks.
I dont know the British market real well but I think part of it has to do with competition. The US has 8,500 banks alone. That doesnt include savings and loans, savings banks, industrial loan companies and credit unions. Would love to hear a little more how the UK market is structured. My company issues credit cards there but don't know a ton about it.
Banks have today come under fire from a consumer group for confusing customers about whether they can use cashpoints for free.
Which? says half of bank customers are confused as to whether they will be charged to make a withdrawal from cashpoints at each of the 15 major banks.
Cash machine operator Link, however, denied that the survey provided evidence that customers using charging machines were unable to identify that they charge.
According to the Which? survey, with exceptions of Barclays and Lloyds TSB, over half of respondents did not know whether they would be charged or not when using a cash machine.
For Barclays, 47 per cent of respondents did not know whether they would be charged or not, while for Lloyds TSB the figure was 49 per cent.
"People are already having to go out of their way to dodge the fee-charging cashpoints in shops and bars," said Emma Bandey, senior public officer for Which?
"What this research shows is that it's likely that many people also waste time and effort trying to find a machine run by their own bank to ensure they won't be charged."
Which? wants cashpoints labelled red for charging and green for free so people can see upfront whether they will be charged.
It claims that Link's improvements to make cashpoint charges more transparent "have fallen short".
But Link denied this was the case, saying in a statement: "The latest survey by Which? provides no evidence that consumers actually using charging machines are unable to identify that they charge.
"However, Link and its members recently commissioned independent research based on cardholders using charging ATMs. Link and its members will consider carefully the results of this research in deciding how transparency can be further improved."
In July last year Link introduced new warnings on cash machines that charge, including a warning on the outside of the machine, an on-screen warning on the amount charged, and a requirement to ask the customer for acceptance of the charge before completing the transaction.
But Which?'s Ms Bandey added: "Consumers deserve to know when faced with a cashpoint whether it is free to use or whether there will be a charge. Why should we be faced with uncertainty when there is the simple low cost solution of labelling?"
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