NATIONWIDE Building Society has welcomed an MP's bid to regulate cash machines so customers know whether they are being charged.

James Plaskitt made a move this week to raise the issue of fee-charging cash machines in the House of Commons.

He has called for the industry to adopt a code of practice for cash machine operators.

But Nationwide says it would rather the industry regulated itself rather than have rules imposed on it and has called on other cash machine operators to get their act together to avoid legislation.

In an adjournment debate in the House of Commons Mr Plaskitt, Labour MP for Warwick and Leamington, called on the Government to regulate cash machine networks in order to protect consumers.

He said the Government should introduce regulations to ensure that all fee-charging ATMs are required to carry prominent and accurate signs, warning customers that they will be charged and exactly how much the fee is.

Nationwide, which has proposed an industry code of practice, welcomed the fact this issue has been debated in parliament, but said talk about regulation is premature.

Stuart Bernau, Nationwide executive director said: "The growth of charging machines and the lack of transparency about charges are serious issues for consumers so it is quite right for MPs to demand action on this issue.

"However we believe that it is premature to be considering regulation of cash machine networks at this stage.

"If as an industry we don't get our act together then regulation will surely follow.

"But I am confident that members of Link can work together to adopt a Code of Practice along the lines of the one proposed by Nationwide."

During the debate Mr Plaskitt said: "The trends are worrying and clearly established.

"I am concerned that very soon there will be more charging machines than there will be free ones."

In calling on the Government to enforce rules on transparency of charges.

He said he wanted customers to be able to choose to walk away from machines if they charge too much, if they want to.

Last month Nationwide warned that free cash machines may become a thing of the past.

A report showed one in three about 18,500 cashpoints in the country now imposes charges.

The building society has regularly affirmed its commitment to keeping its machines free to use.

Tom Morton