And Finally... Banks bid to end free ATM cash machines
Banks are plotting to impose charges on all cash machines if they lose a legal battle over overdraft fees.
Free ATMs will disappear from the high street should the Supreme Court rule in favour of customers fighting "unfair" charges.
Judges are expected to back the Office of Fair Trading's challenge at a long-awaited hearing on Wednesday.
The watchdog has already won victories in the High Court and Appeal Court on behalf of customers who were overcharged.
Industry insiders warn current pay-to-use charges of up to ã2.50 would be introduced everywhere to recoup money.
The move is bound to spark fury among customers already fed-up with bank bosses' greed amid the vast bonuses culture.
Which? personal finance campaigner Phil Jones said: "That is outrageous.
"Especially as the banks have been supported by the taxpayers."
Complaints about overdraft fees have been frozen since July 2007 awaiting this week's Supreme Court decision.
More than 1.1 million customers have an estimated ã1.7billion stuck in limbo while they wait for the judges' verdict.
The banks are Abbey, Barclays, Clydesdale, HBOS, HSBC, Lloyds Banking Group, Nationwide Building Society and Royal Bank of Scotland.
A decision against them could cost the banking industry billions.
Insiders warned the financial giants have been looking at "multiple ways" of recouping cash from customers.
One said: "We are an industry, not a charity. People have to remember that it does not cost nothing." Another added: "If the banks are made to reduce the charges there will be a knock-on effect.
"We are one of the few countries that has free banking. We'll see charges elsewhere."
Charges could also be introduced for internet banking under another option being explored by industry chiefs.
Before the 2007 freeze banks shelled out an estimated ã784million to nearly 378,000 customers to stop an avalanche of complaints hitting the county courts.
City watchdog the Financial Services Authority has already asked chiefs how they will repay customers "effectively and swiftly" if they lose this week.
The Supreme Court, which replaced the House of Lords as the UK's highest court last year, could still transfer the case to Europe.
A spokeswoman for Clydesdale bank said: "We certainly don't have any plans to do this."
Lloyds TSB added: "It's not something I'm aware of."
The first British cashpoint was launched in 1967 by On The Buses star Reg Varney.
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Tony White
British Bankers' Association here. There are no current plans to end free banking - either at the cash point or on current accounts generally. This is the case even though banks themselves have to pay charges, for instance when their customers use the cash machines of another bank. In most other countries, people pay for their transactions - the UK model is fairly unusual.
Also, please note that Wednesday's Supreme Court ruling is not about the fairness of bank charges - that is subject to a separate and ongoing Office of Fair Trading investigation which is yet to conclude. The ruling will only address whether a piece of EU legislation can be applied to current accounts.
interesting article.
Why on earth do people of this country still sit back and do nothing about the obscene levels of greed that the banking sector pursue. It is profit at any cost to these people and despite taxpayers bailing them out (without a taxpayer being asked if they want to do this). Of course the banks will look at other ways of recouping money they lose and of course it is the millions of customers who will be expected to cough up. How long before the banks charge you to put money into your account on a day not specified by your bank?
I'm amazed at our apathy. How much has the banking insdustry spent on barristers in order to conceal the complexities of bank charges? Bonuses are still being paid out to those who contributed to the banking collapse last year.
Banks are money lenders they've never been anything else. As a taxpayer who along with millions of others 'lent' the bank money in their hour of need can I get some interest on my contribution? Given how the banks themselves went millions overdrawn why were no extra charges billed for such incompetence and why has no senior banker lost their job?
It would be laughable if it wasn't so serious. We are a nation of idiots who trust thieves because they wear a suit.
And of course when the banks right themselves thanks to public financial input and profits once again so the knighthoods will be rolled out to those at the top as if it was their achievements.
Greed has cost thousands of jobs and hardship to those less well off and somehow the bankers get rewarded for this.
Well only time will tell I guess, we shall see how accurate your comments are! Anyway nice work on the blog, stumbled upon it.