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Banks impose rival cash machine ban           19/8/11

Two high street banks are banning customers from using their rival cashpoint machines.

The taxpayer-owned Royal Bank of Scotland is following the practice of Lloyds TSB and forcing its basic account holders  from withdrawing money from other banks’ ATMs.

Current account holders who pay fees every month will still be allowed to use any machine.

It signals the end of universal free cash withdrawals and is feared to hit people in island areas the most because of the lack of alternative machines within reach.

MSP Alasdair A llan said: “This is a very unhelpful move, particularly as the holders of these bank accounts are most frequently on low incomes. In particular it hits constituencies like my own hardest, where some customers will now face difficulty accessing their own money.

“There is only one branch of the RBS each in Stornoway, South Uist and Barra and one Lloyds TSB in Stornoway.

“Where many customers already had to travel to use a cash machine and bank in many case they will be left without any access to this facility at all.”

He added: “These banks are making life harder for those customers on low incomes and will force them to spend more to get access to their own money. They are penalising the same taxpayers who bailed them out.

“I will be contacting these banks on behalf of my constituents to let them know the effect this could have on many of their customers, particularly those in rural areas.”