Barclays has surrendered to public pressure and rejected a decision to prevent its customers from withdrawing money at post offices following a surge of criticism.
The bank took a u-turn after it surfaced that Barclays managers would be examined regarding the choice by a board of trustees of MPs who had marked it “a negligible, penny-squeezing move” and were about to publish a first critical report on the debate, the Guardian detailed.
Barclays told it had been “convinced to reexamine” its decision and would keep the money withdrawal facility for now.
On 8 October, Barclays’ declared that it was hauling out of a deal enabling its bank customers for free could withdraw money from post offices which prompted a quick rejection.
It was the first bank to scrap over-the-counter money withdrawals at Post Office branches, with 28 other UK banks joining to another system that implied a great many individuals could withdraw money and also profiting by free access to everyday banking services.
Chairman of the cross-party business, energy and industrial strategy (BEIS) committee, Rachel Reeves stated: “Barclays has at last seen the looming disaster and gave in to public and political strain to dump this bitterly confused policy.”
She included: “I met with Barclays, and as a board, we were exceptionally clear that they should confront public investigation for their actions. The BEIS advisory group has gotten out this offensive conduct towards customers, and we respect the way that Barclays has belatedly understood the fight is upon this policy.”
Barclays’ decision would have unfolded results in January 2020 – seemed of being connected to a sizeable growth in the bank-financed charges paid to postmasters for giving these services. They will get around three times more compensation than under the prior agreement between the Banks and the Post Office.
The Guardian comprehends that Barclays would have spared uniquely about £11m every year by rejecting money withdrawals at post offices. Serving about 0.3% of the £3.5bn it made last year in pre-tax profits.
CEO of Barclays UK, Matt Hammerstein, was expected to be the chief financial manager to confront MPs on 6 November.
There is much concern lately regarding bank branches and ATMs closing, which may impact many people, especially the rural areas, as they will find it difficult to access cash.
Barclays has shut around 481 branches since 2015, as indicated by the consumer group Which?
In an announcement, the bank stated it would now “resolve to full support in the Post Office banking system from the renewal date in mid-2020, including the money withdrawal service”.
The Barclays’ CEO, Jes Staley, said that it had planned several measures to guarantee that none of its customers would be without access to money, yet he included: “Our choice, nonetheless, incited a lot of public and private quarrel. We have heard the points carefully that were made by the ministers in the government, consumer advocates, and MP’s.
“At last, we have been convinced to reconsider our proposition by the contention that our full investment … is essential now to the suitability of the post office network.”
He added that the bank had “concerns in regards to the supportability of depending on this model in the long run; however, it would now keep up full assistance, including money withdrawals utilizing a debit card, for the following three years.” The Guardian reported.
The Post Office, in the interim, stated it was “enchanted” Barclays had chosen its customers “can keep on having simple and secure access to money withdrawal services at our 11,500 branches.
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