Post offices threatened with back payments for cash machines

[Big Daz]

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Alan Reid has called on the Government to take urgent action to ensure that struggling post offices are not hit hundreds of pounds of back-payments relating to supposedly free cash machines which they have installed.

Liberal Democrat MP for Argyll and Bute, Alan Reid said, "it is scandalous that post offices are being threatened with back payments on what seems to have been offered as a free service."

Alan Reid, has received reports from his constituency that sub-postmasters are being threatened with charges - which are to be deducted from their pay - for cash withdrawals made by customers from ATMs. More alarmingly, the Post Office has said it will collect ‘outstanding fees' from the last two years.

Letters sent in 2006 encouraging sub-postmasters to install the ‘free' RBS/Natwest cash machines, following a Government initiative to provide access to free cash, made no mention of charges and stated that ‘any costs incurred in using Post Office cash will be borne by Hanco [the business partner providing the programme].'

Attaching the situation Alan said, "after the recent savage closure programme, the last thing local post offices need is to be hit with unexpected fees which could run into hundreds of pounds."

Alan called upon the government to take action saying, "Lord Mandelson must explain what he intends to do to ensure these costs do not send yet more post offices to the wall. While it is important that free access to money is available to people across Scotland, it is wrong that struggling post offices should be saddled with unexpected costs."