bassethound
18-08-11, 17:05
The consumer watchdog has asked Royal Bank of Scotland (LSE: RBS.L - news) (RBS) to reconsider barring almost a million of its customers from rivals' cash machines.
The move affects the part-nationalised bank's basic account holders who pay no fees, are already unable to hold a chequebook or have an overdraft.
It is understood many take out such accounts as they can not secure better services because of financial problems in the past.
RBS blames its decision on the inability to recover the costs involved when basic account customers withdraw money from its rivals' ATMs.
A spokesman for RBS said: "We are fully committed to offering a free basic account for people who may otherwise struggle to access banking services.
"Our basic account holders will still enjoy free access to one of the largest ATM (Taiwan OTC: 3423.TWO - news) networks - over 8,000 - in the UK, through RBS, Natwest, Tesco (LSE: TSCO.L - news) .
"They also can make withdrawals at any Post Office counter."
But the move, which follows a similar one by rival Lloyds, has prompted concern on the ease of access to funds.
Marie Burton, financial inclusion expert at Consumer Focus, said: "This is a kick in the teeth for many of RBS's most vulnerable customers.
"We would call on RBS to reconsider this, which will exclude its basic bank account holders from using the majority of the UK's free cash machine network."
She (SNP: ^SHEY - news) argued that such a decision harmed wider efforts to lure the one million people in the UK without a bank account, into the financial system.
"People living in rural areas deserted by bank branch closures may not have the option of other ATMs nearby," Ms Burton said.
The move affects the part-nationalised bank's basic account holders who pay no fees, are already unable to hold a chequebook or have an overdraft.
It is understood many take out such accounts as they can not secure better services because of financial problems in the past.
RBS blames its decision on the inability to recover the costs involved when basic account customers withdraw money from its rivals' ATMs.
A spokesman for RBS said: "We are fully committed to offering a free basic account for people who may otherwise struggle to access banking services.
"Our basic account holders will still enjoy free access to one of the largest ATM (Taiwan OTC: 3423.TWO - news) networks - over 8,000 - in the UK, through RBS, Natwest, Tesco (LSE: TSCO.L - news) .
"They also can make withdrawals at any Post Office counter."
But the move, which follows a similar one by rival Lloyds, has prompted concern on the ease of access to funds.
Marie Burton, financial inclusion expert at Consumer Focus, said: "This is a kick in the teeth for many of RBS's most vulnerable customers.
"We would call on RBS to reconsider this, which will exclude its basic bank account holders from using the majority of the UK's free cash machine network."
She (SNP: ^SHEY - news) argued that such a decision harmed wider efforts to lure the one million people in the UK without a bank account, into the financial system.
"People living in rural areas deserted by bank branch closures may not have the option of other ATMs nearby," Ms Burton said.