Finance experts says ATM cash code falls short

New rules intended to make sure that no one is charged for cash withdrawal without being aware of it do not go far enough, finance experts have said.

Rules monitoring the thousands of cash machines in the UK were changed earlier this year in an attempt to tighten up on cash machine operators charging for withdrawal.

All cash machines must now prominently display a warning that they will charge users on their screens, cases and on any signs directing people towards them.

They must also provide users with an opportunity to cancel the transaction at no cost when they do not want to be charged, and allow users to compare credit card transactions prices.

Halifax and Nationwide have lobbied for a new additional colour coding system to ensure that no one is ever charged by mistake. Link, which runs the UK cash machine network, has rejected the proposal however.

“Current signage requirements are inadequate and the time has come for the industry to stop dragging its heels on this issue,” said Stuart Bernau, Nationwide executive director.

“Consumers deserve nothing less than clear, colour coded signs informing them whether or not they will be hit with a fee for withdrawing their own money. We are disappointed that the Link members have rejected the proposals for greater transparency.”

© Adfero Ltd

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