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ATM fees punish the poor, say MPs

March 28, 2005

The Guardian: Charges for withdrawing cash from hole-in-the-wall dispensers are expected to come under severe criticism later this week when the U.K.'s Treasury select committee of MPs publishes the findings of its investigation into the sharp increase in the number of fee-charging machines.

The MPs have already warned that the country's network of free cash machines could disappear and expressed concerns that the people currently paying the fees are those living in deprived areas who make small withdrawals on a regular basis.

They are now expected to call for greater clarity from providers of machines that levy a fee after one MP produced a photo of one machine with a warning sign placed at knee-level at one public hearing. There were also reports this weekend that the MPs would call for regulatory changes over the price charged to withdraw cash.

While most ATMs were free to use five years ago, it is now estimated that about 20,000 of the country's 54,000 machines charge a fee of between £1.50 (U.S. $2.81) and £5 (U.S. $9.37). The charges have become so common that they are now included in the basket of goods used to calculate the level of inflation.

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(Read also: MPs say fee-charging ATMs in the UK hit the poor; UK's independent operators bear brunt of ire over ATM fees; British MPs grill independent ATM operators; Anti-fee campaign hurts British ATM operator's financials; UK fight over ATM charges heats up