Barclays U-turn on cash withdrawal ban

The bank’s U-turn came after it emerged that Barclays bosses would be questioned about the decision by a committee of MPs who had labelled it “a petty, penny-pinching move” and were hours away from publishing a highly critical report on the controversy. Barclays’ announcement on 8 October that it was pulling out of an agreement allowing its bank customers to withdraw cash from post offices for free led to an immediate outcry. The BEIS committee has called out this egregious behaviour towards customers, and we welcome the fact that Barclays has belatedly realised the game is up on this policy.” Barclays’ original decision – which would have taken effect in January 2020 – appeared to be linked to a sizeable rise in the bank-funded fees paid to postmasters for providing these services. Jes Staley, the Barclays’ chief executive, said that alongside the change, it had planned a comprehensive package of measures to ensure that none of its customers would be without access to cash, but he added: “Our decision, however, provoked a great deal of public and private debate. “Ultimately, we have been persuaded to rethink our proposals by the argument that our full participation … is crucial at this point to the viability of the post office network.” He said the bank had “concerns regarding the sustainability of relying on this model in the longer term, but would now maintain a full service, including cash withdrawals using a debit card, for the next three years.” Frank Field MP, chair of the Commons work and pensions committee, said Barclays had realised “they would not get away with cutting off yet more of their own customers after poleaxeing branches in many areas”.

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