Pitlochry campaigners are demanding a law change so the town can open a banking hub.
It comes as the Bank of Scotland prepares to close its Pitlochry branch.
The last bank in the busy tourist town will shut up shop on October 30.
But the nearest alternative branch is 20 miles away in Blairgowrie.
And that will leave customers without cars facing a two-hour round trip.
Banking hubs are being opened across the UK in communities, such as Auchterarder and Crieff, that have been stripped of local branches.
They allow people to do over-the-counter banking and host visiting specialists from high street banks who can help with more complicated queries.
But Pitlochry campaigners have been told their town isn’t eligible for one under the current rules.
And those rules have been branded an “utter guddle”.
Agencies ‘passing buck’ over Pitlochry bank concerns
Local MP Dave Doogan is leading the charge on behalf of locals.
He has raised the issue with the body that decides where banking hubs are sited, as well as the Financial Conduct Authority and the Treasury.
Mr Doogan is now accusing all three agencies of “passing the buck”.
And he’s calling on the UK Government to take urgent action to protect Pitlochry from “flawed” legislation.
“Pitlochry’s unique location means it serves as a hub for communities well beyond the town,” said Mr Doogan.
“It is simply not sustainable to ask older and vulnerable residents to travel huge distances to access even the most basic of banking services.”
Pitlochry caught in bank rules red tape
Mr Doogan and councillor Mike Williamson initially met Bank of Scotland representatives to raise locals’ concerns after the branch closure was announced.
Bank bosses have said they will work to keep or replace the cash machine.
It’s understood two possible new locations in Pitlochry are being considered.
But Mr Doogan and local MSP and First Minister John Swinney also approached LINK, the organisation responsible for recommending banking hubs across the UK.
It says Pitlochry is ineligible for a banking hub.
That’s because it’s governed by Financial Conduct Authority (FCA) rules.
And these mean assessors are only able to consider access to cash, not access to banking services.
The FCA told Mr Doogan it is bound by the UK Government’s Financial Services and Markets Act 2023.
And the UK Government told him it has “no plans to change the criteria.”
Parliament told of ‘utter guddle’
Mr Doogan has now raised Pitlochry’s plight in the House of Commons, requesting “a debate on government time to discuss how we fix this utter guddle”.
He said: “The current system for assessing banking hub eligibility is deeply flawed, with LINK, the FCA and the Treasury all passing the buck.
“It is vital that this is urgently revisited by the UK Government to prevent Pitlochry being overlooked due to flawed legislation.”
Conversation