Agenda item

The Members of the Committee were reminded that the Council, at its meeting on 4th May, had passed the following motion, which had been proposed by Councillor Heading and seconded by Councillor Lyons:

“This Council notes the increase in commercial (non-bank) ATMs in convenience stores and in our high streets. The Council further notes that the financial charge made against the consumer for withdrawing their own cash from their own bank account can range from 75 pence to £1.25 per withdrawal.

“This Council notes the increase in commercial (non-bank) ATMs in convenience stores and in our high streets. The Council further notes that the financial charge made against the consumer for withdrawing their own cash from their own bank account can range from 75 pence to £1.25 per withdrawal.

The Council understands the need for people to be able to access cash while acknowledging the pandemic impact on the use of cash in circulating in the local economy.

The Council also notes that those on fixed incomes face a financial charge to withdraw small amounts of cash, usually for necessities, and this is an unnecessary financial burden on older people and families.

The Council, therefore, will write to the Financial Conduct Authority urging it to cap the number of ATMs that charge for withdrawing cash.

The Council will also ask the Financial Conduct Authority to check on behalf of consumers, how such ATMs are sited and the criteria applied and if there is any correlation between the siting of cash ATMs which charge in areas of social deprivation, on the grounds they may be used more often in a seven-day period by people on fixed incomes and are, therefore, more profitable.”

            The City Solicitor reported that, as called for in the motion, a letter had been sent to the Financial Conduct Authority, which had then been forwarded to the Payment Systems Regulator, as the organisation responsible for LINK, the United Kingdom’s largest cash machine network.

            The response from the Payment Systems Regulator had recognised the important role which cash played for many people and highlighted the need for everyone to have a wide choice when making payments, in ways which worked for them. The Regulator had recently reaffirmed this commitment in a joint statement with the Financial Conduct Authority.

In relation to ATMs, the Regulator was focusing on ensuring that LINK delivered on its 2018 commitment to maintain the existing geographic spread of free-to-use ATMs for cash access. To ensure this, it had issued Specific Direction 8 to LINK, which required LINK to do all that it could to fulfil its commitment to maintaining the broad geographic spread of free-to-use ATMs. The Regulator was currently reviewing the need to keep this Direction in place and planned to publish a decision on this shortly.

            The response had gone on to point out that LINK’s commitment included the replacement of those free-to-use ATMs which closed, provided that there was no alternative free ATM or Post Office within one kilometre. It had added that, should anyone feel that free access to cash was insufficient in Belfast, even in areas which already had an ATM, LINK could be contacted through its community request scheme. That would allow them to identify a location where a free-to-use ATM may be required. Approximately 50 cashpoints had already been installed as result of community requests.

            The response had concluded by stressing that the Payment Systems Regulator did not have the regulatory authority or power to cap the number of ATMs which charged for withdrawing cash. The provision of pay-to-use ATMs was a commercial matter for individual ATM providers and this was not controlled by LINK or the Payment Systems Regulator.

            The Members of the Committee agreed to recommend that, in accordance with the Council decision of 4th May, the Chief Executive exercise her delegated authority to note the response.