Lloyds TSB caves to pressure from Treasury Select Committee

One provider of personal and business bank accounts in the UK has finally caved to pressure from the Treasury Select Committee in deciding to allowing basic account holders to access an increased number of ATMs in 2012.

High Street banking provider Lloyds TSB has announced it will rescind its  2006 policy of limiting basic bank account holders by denying them access to their cash at cash machines owned and operated by competitors, a move designed to cut costs, as the lender incurs a fee every time one of their customers uses a competitor’s ATM.

Lloyds TSB is not the only High Street lender with such as policy.  RBS also denies its basic account customers access to their cash anywhere but Morrisons, Tesco, NatWest, and its own ATMs.  However, Treasury Select Committee chairman, Andrew Tyrie, recently revealed correspondence between him and the two banks in question, expressing concerns that limiting access to cash may target low income earners, Brits who run the highest risk of being financially excluded.

In response, Lloyds TSB has decided to allow its basic account holders to not only access its own cash machines, but also those from Bank of Scotland and Halifax – which adds up to a total of around 6,600 ATMs throughout the country.  While the decision is nowhere near Mr Tyrie’s request for universal access, the new cash machine network availability will still be of great benefit to basic bank account customers.

However, RBS has declined to budge from its current position, though when approached for comment from the press, the High Street giant chose not to comment on its decision.

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