ATM costs warning over bank charges

Banks could respond to an unfavourable court ruling on their charges by slapping levies on cash withdrawals from ATMs, it has been warned.

This week will see the Supreme Court rule on a test case brought by the Office of Fair Trading (OFT) over the size of penalties imposed by financial institutions for infringements on current accounts such as unauthorised overdrafts, bounced cheques and missed standing orders.

According to the banks, losing the case could mean they recoup the lost income by ending the current situation where the majority of ATMs do not charge people for withdrawing money.

Such a move could have implications for those with debt management issues, not least for those who might make smaller and more frequent withdrawals as they could be charged more as a result.

The review of the fairness of bank penalties will be decided by the new Supreme Court after the OFT revealed in March that it would be pursuing the issue.

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