Nationwide Plans to Sue Barclays Over Cash Machine Charges

Strategic Insights -

Nationwide Building Society has announced plans to take legal action against Barclays Bank over its decision to charge customers $1 for using Barclays cash machines. The move comes after Nationwide argued that the fee is in breach of the rules of the Link cashpoint network, which Barclays joined earlier this year. Nationwide claims that under Link rules, member companies are already reimbursed 30p every time a customer from another bank uses its machines, making the proposed $1 charge "pure profit for Barclays".

Key Takeaways:

  • Nationwide Building Society plans to sue Barclays Bank over its decision to charge customers $1 for using Barclays cash machines.
  • The move is in response to Nationwide's argument that the fee is in breach of the rules of the Link cashpoint network, which Barclays joined earlier this year.
  • Nationwide claims that under Link rules, member companies are already reimbursed 30p every time a customer from another bank uses its machines.
  • Barclays announced its plan to charge a $1 fee to customers of other banks and building societies using its cashpoints in August, sparking fury from existing Link members.
  • Barclays has scrapped a $1.50 charge on its own customers when they use rival banks' cashpoints, but Nationwide argues that this makes no difference to the proposed $1 charge on other customers.
  • Nationwide says it will launch legal action unless Barclays "reconsiders" the charges by next Thursday.
  • The Link cashpoint network was set up in 1986 by Giro Bank, the Co-op, and leading building societies, and now includes all the major high street banks after Barclays, Lloyds TSB, and Midland (now renamed HSBC) joined in July.

Statistics:

  • Nationwide claims it will lose $1 every time one of its customers uses a Barclays cashpoint, resulting in significant costs for the society.
  • Barclays had levied a $1.50 charge on its own customers when they used rival banks' cashpoints, but has since scrapped this charge.
  • The Link cashpoint network includes all the major high street banks, with Barclays, Lloyds TSB, and Midland (now renamed HSBC) joining in July.
  • Barclays announced its plan to charge a $1 fee to customers of other banks and building societies using its cashpoints in August.

Sources:

  • Nationwide Building Society (article title not provided, but mentioned in the paragraph below)
  • "Barclays apologizes for cashpoint charges row" (unknown source, but mentioned in the article)
  • The Link cashpoint network (membership details and history not provided)