July 20, 2006

Charity Citizens Advice has claimed that the credit and debit card holders hit hardest by fee-charging cash machines are those that live in the poorest areas.

Based on this, the charity has asked banks and ATM operators to ensure that they will not reduce the number of free cash machines in deprived areas and also improve the notification on machines that do charge.

Typically, the cost for withdrawal from a cash machine is £1.50, but Citizens Advice points out that some charges can be as high as £3.

The reports identifies a number of ATM "deserts" where no free machines are to be found and these are often in deprived areas.

This phenomenon of fee-charging cashpoints is a relatively modern one, as in 1999 virtually all machines were free. Now, however, 40 per cent of the 58,000 ATMs that operate across the UK charge a fee regardless of the amount withdrawn.

David Harker, chief executive of Citizens Advice, said: "This is becoming a growing problem. People on low incomes need to take out small amounts of money and more frequently, but they should not be penalised as a result.

"Rural communities are amongst the worst affected, where people may have to travel miles to the nearest free cash machine or pay a high charge."

Some other "charging hotspots" were identified by Citizens Advice, such as hospitals and university campuses.