DUNDEE CITY Council is backing a House of Commons motion calling for banks to guarantee free withdrawal facilities at ATMs in disadvantaged areas.

The local authority will also be writing a letter of complaint to the Royal Bank of Scotland, which bought a company operating around a quarter of all fee-charging cash machines and yet, according to some MPs, had not done enough to alleviate the effects of the fees on poorer communities.

The growing tendency for customers to be charged around £1.50 for withdrawing their own cash from non-branch ATMs was variously described by Dundee councillors earlier this week as deplorable, disgraceful and despicable.

Members of the council’s policy and resources committee unanimously agreed to support the Early Day Motion.

Of prime concern to councillors and MPs is the perception that many fee-charging ATMs are in poorer areas, where people are less able to afford to travel to free alternatives.

The Commons motion condemned the banks for their decision to sell-off non-branch-based ATMS to fee-charging third parties, saying it would disproportionately hit those having their state benefits paid into their accounts.

Although the motion singled out the Royal Bank of Scotland, many other banks also charge customers a withdrawal fee.

The Royal Bank has also been accused by the Citizens’ Advice Bureau and National Consumer Council of levying a “tax on the poor.”

Several city councillors have pointed out that the average fee of around £1.50 was a substantial amount if the customer was withdrawing just £10 or £20, as is often the case for people with smaller bank balances.

Council leader Jill Shimi said she “deplored” the practice and was particularly concerned about its effects on older people, who had their pensions paid directly into their bank accounts.

She said pensioners were always advised not to keep more money than necessary in their homes, yet the prospect of being charged to gain access to their own cash might encourage them to do just that.

SNP group leader Councillor Willie Sawers said ATM charging was “nothing short of scandalous.”

Lord Provost John Letford used the words “disgraceful and despicable.”

The charges, if levied on one customer for four withdrawals from an ATM in a single week, would add up to a sum that would cover the cost of tea for a family, said Councillor Ian Borthwick.

He added, “It comes down to greed on the part of the banks.”