The chairman of the Treasury Select
Committee (TSC) – a group of backbench Members of Parliament which
scrutinises the UK finance ministry and the Bank of England – has
called on Royal Bank of Scotland (RBS) and Lloyds to justify their
policy of restricting basic bank account holders from using ATMs
owned by other banks.
TSC chairman Andrew Tyrie said:
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“We are concerned about restrictions on
access to using other banks cash machines for basic bank account
holders at Lloyds and RBS.
“This change threatens to increase
financial exclusion as it leaves basic bank account holders at the
two banks unable to access the majority of cash machines in the
UK.
“This could signal the end of universal
access to cash machines for all customers – which would stifle
competition and be bad for consumers.”
Basic bank accounts offer many of the
usual services available from a standard current account, including
a debit card, direct debits, standing orders and cash withdrawals.
However, they don’t come with an overdraft facility.
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By GlobalDataAs a result, they can be useful for
consumers with a poor credit history (or no credit history at all)
who find it difficult to access mainstream banking services.
RBS announced its decision to restrict basic bank account customers
from using ATMs owned by other banks in August.
Lloyds already has such restrictions
in place.
