Post office facing cash machine bills
VILLAGE post offices face being hit with big bills after bungling mail bosses forgot to charge them for installing cash machines to entice customers in.
For two years, sub-postmasters have enjoyed having the "free" machines in their stores, often acting as the only source of accessing cash without travelling to the next town.
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Post Office
But now Post Office Ltd has admitted it should have been charging to keep the machines stocked with notes – and branches will need to pay bills dating back two years. In many cases, the cost runs to hundreds of pounds.
Last night the Liberal Democrats claimed it was "scandalous" post offices were facing big bills so soon after the swingeing cuts which saw 140 Westcountry branches axed last year.
Ministers boasted after the last round of closures that there were still many more branches than major banks or building societies across the country.
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Calls have also been growing for the Post Office to offer more banking services in order to attract custom and put the network of 12,000 remaining branches on a stronger footing.
But it seems the first foray into that field will leave sub-postmasters out of pocket. For every £100 supplied, branches face a bill of 20p plus VAT.
Over the last two years the cost could wipe out any benefit from the extra customers the machines have attracted.
Lib-Dem MP Alan Reid (Argyll and Bute) said: "It is scandalous post offices are being threatened with back payments on what seems to have been offered as a free service.
"After the recent savage closure programme the last thing local post offices need is to be hit with unexpected fees."
He is now calling on Business Secretary Lord Mandelson to step in "to ensure these costs do not send yet more post offices to the wall".
The National Federation of Sub-Postmasters said talks are under way in a bid to resolve the dispute.
Last night a Post Office spokesman admitted the branches will have to pay up.
He said: "Post Office Ltd is apologising to sub-postmasters for having to reclaim fees for providing cash for their ATMs for a period of time, for which we mistakenly did not charge. We will of course not be asking for these payments in a lump sum."
The firm is also stressed the costs were to be borne by sup-postmasters and was "absolutely not about Post Office Ltd charging customers to access their cash".
A study by the Department for Environment, Food and Rural Affairs recently found people in the South West were finding it difficult to access post office services – a situation that had worsened since Labour came to power.
7 Comments
by margaret taylor, truro
Thursday, May 07 2009, 3:48PM
“thursday 7thmay
Hanco, suppliers of the cash machines have today contacted businesses who have the free to cash machines and have stated that the small amount of commissionoffered for having one of these machines on the premises was to cover the amount POL would ask for using PO monies(not mentioned at any time or writteninto any contract)
At £50per 500 "hits" disregarding any amount plus 11p per transaction one can clearly see that if each transaction averaged £100 and there were 500 "hits" per month then the Postmaster would get £50 plus £55 from Hanco but have to pay POL £100 plus VAT (£112.50) and be out of pocket for the cost of the electricity etc to run the machine.This is a sad case of Hanco now trying to cover its back. Also- where is the Government now to defend the Postmasters on a Government run scheme gone wrong AGAIN, because it was never thought out properly”
by Reg, Portugal
Thursday, May 07 2009, 11:09AM
“I agree with Steve, Helston. I am not sure we have the full picture regarding this article. However and in any event, any losses by Post Office Ltd should be borne by their own budgets and those at Director etc level should be disciplined for inefficiency and incompetence. Budgets of whatever size branch (sub or main) should not bear the brunt for such incompetence. Joe Public will suffer in any case. Advice: unless you actually have to use them (and I apologise to those who have to) do not use machines where you pay to draw your own money. Shops, POs etc all have their own profit margins and budgets (fuelled by us) which could easily pay for these machines.”
by Steve, Helston
Wednesday, May 06 2009, 4:33PM
“Not sure I understand this story!
The 20p per £100 is presumably the fee charged for "ATM fit" notes by the cash handling companies like Securicor/Group 4. This is what they charge banks for supplying notes ready to go into the big ATMs, which won't feed poor quality notes.
The small ATMs in shops and POs are a lot slower and simpler, so they are happy using tatty notes. Most of these machines are actually filled by the shopkeeper or sub-postmaster, using notes taken from the till - no need for "ATM-fit notes, so no 20p fee.
Also, many of the free PO ATMs are subsidised by RBS. The store/PO supply the floor space and the electricity, and they fill the machine. RBS cover the cost of the ATM and maintenance.
I wonder if this story is actually about the big ATMs in main Post Offices, not the small ones in sub-offices?”
by margaret taylor, truro
Wednesday, May 06 2009, 12:46PM
“Ironically many of the Post Offices with "free to use" Hanco cash machines were offered them as part of a government "Oasis" scheme to provide free cash to "deprived" areas. There was an instruction from POL to use their money, but no contract nor indication that there would be a charge to use PO money.These postmasters receive no commission on the transactions made and the only hope for extra money would be from the "footfall" into their branches, and I can assure you many of the public feel no shame in accessing this money and walking straight out. Would anyone in their right mind agree to having one fitted in their branch if it meant a bill that equates to their yearly remuneration from POL.!!!”
by len hudson, st austell
Wednesday, May 06 2009, 12:02PM
“if these post offices are made to pay for these cash machines then i can see that people will be charged for using them . on priniciple i never use machines that charge you for drawing your own money . but what if you live in a small village and dont have a car ?”
by Craig, Redruth
Wednesday, May 06 2009, 11:40AM
“Yet another huge mess up, you'd think with all the money these bigwigs get, they'd find ways of getting something right!”
by David, Bristol
Wednesday, May 06 2009, 9:50AM
“I assume there was a contract and it should be quite clear if there is a service charge payable by the sub post office for the facility. If not................”