Lloyds bows to Treasury Committee pressure over ATM access
Friday 02 December 2011
The Treasury Select Committee has forced one of the major high street banks to partially rethink its policy of restricting access to cash machines for vulnerable basic bank account customers.
In response to pressure from Andrew Tyrie, chairman of the Committee, Lloyds TSB has decided to extend cash machine access for its basic account customers – people who do not normally qualify for standard bank accounts – to all machines in the Lloyds Banking Group.
It is not the universal access that Mr Tyrie demanded but it does mean that from early next year the customers will be able to use Halifax and Bank of Scotland machines, giving them a network of 6,600 ATMs to withdraw cash from. The move reverses the cost-cutting decision made in 2006 to restrict access to Lloyds TSB machines only.
Meanwhile, a decision in September to restrict new Bank of Scotland customers to only using machines from Halifax and BOS will also be reversed and they will also get access to all Lloyds Banking Group ATMs from early next year.
Yesterday Mr Tyrie made public a series of letters between himself and bosses at Lloyds and Royal Bank of Scotland, the other major bank which restricts access to cash machines to basic account customers.
In the letters, Mr Tyrie expressed concerns that vulnerable customers of the two banks are being penalised by being prevented from using the majority of the UK's free cash machine network.
Mr Tyrie said: "I understand the need to reduce costs, particularly at this difficult time. However, the decision to restrict access to cash machines has major implications for universal banking services and appears to target those vulnerable consumers who are most at risk of financial exclusion."
He asked the banks to give the issue "further consideration". Lloyds has responded positively but RBS said it was standing by its decision to withdraw the use of non-RBS machines to its basic customers.
In a response to the Treasury Seelect Committee, RBS head of retail Brian Hartzer explained: "We are running our basic accounts at a loss to the bank which we need to reduce. To continue to offer this service we have to make sure it is financially sustainable."
- 1 Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
- 2 #NotGuilty: Second Oxford student writes of brutal rape by two men who then threw her in a bin as part of campaign against victim blaming
- 3 Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
- 4 Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
- 5 How the language you speak changes your view of the world
-
Lucy Hawking: Stephen Hawking's daughter writes impassioned open letter to Katie Hopkins about rights of disabled people
-
Indonesia executions: Death row British grandmother Lindsay Sandiford will refuse to wear a blindfold when she faces firing squad
-
Oxygen-starved 'dead zones' with no marine life up to 100-miles long discovered in the Atlantic Ocean
-
How the language you speak changes your view of the world
-
Russian warships accused of 'chasing away' Swedish vessel to prevent Baltic States from achieving energy independence
-
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
-
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
-
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
-
General Election 2015: SNP and its activists 'openly racist' towards the English, Farage says
-
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
-
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
Framing Fashion with Oliver Proudlock
Watch the first video in our new series for tips on new trends and London's style scene.
Back to nature
Check out our insider’s tour of Menorca's beaches, from the accessible to the remote.
Win up to £15K to bring your idea to life
The Evening Standard has teamed with Born to find the next big innovation. Find out how you can win £15K to bring your idea to life...
The battle of Hallam
The hotly contested Sheffield seat has the most educated voters in the country. Will they show their displeasure at the Lib Dems’ tuition fee u-turn by ousting Nick Clegg?
Win £125 of glasses with Specsavers
Want to boost your spring look? Enter Specsavers competition now and be in the running to win £125 of glasses.
Europe's forgotten city back in premier league
We've teamed up with Hilton Garden Inn to give away a fantastic 3 night trip to Krakow
It’s always a good time to visit Barbados
Discover Barbados with this amazing promotion from Brilliant Barbados, giving visitors more than ever before.
Discover Tobago for FREE!!
We are offering one lucky reader the chance to win a seven night self-catering holiday for two. What are you waiting for? Enter now.
Voting Clever
Detailed polls show where certain seats can be won – or lost – by the power of the student vote. Those who use the polls strategically could really make a difference, writes Lucy Hodges
Health professionals create a design for life
A team at Sheffield Hallam University have designed a revolutionary new neck brace that could transform the lives of Motor Neurone Disease (MND) patients.
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Independent Dating
iJobs Money & Business
Recruitment Genius: Claims Administrator
£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...
Recruitment Genius: Senior SEO Executive
£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...
Recruitment Genius: Online Customer Service Administrator
£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...
Recruitment Genius: Digital Marketing Executive
£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...