Labour MP James Plaskitt yesterday sounded the alarm over fee-charging cash machines in the House of Commons, calling for the industry to adopt a 'clear and enforceable' code of practice for ATM operators.

Plaskitt, MP for Warwick and Leamington, called on the government to regulate cash machine networks in order to protect consumers, saying that cash machine charges were 'opaque' and should be better governed.

'The trends are very worrying and clearly established. I am concerned that very soon there will be more charging machines than free ones,' he said.

As the number of fee-charging ATMs rises, Plaskitt recommends that all fee-charging ATMs carry prominent and accurate signs that warn consumers that they will be charged and exactly how much the fee will be.

Firms like Moneybox and Cardpoint manage over 19,000 fee-charging cash machines in the UK, representing about 40 per cent of all ATMs - a significant rise from just over four years ago when there were less than 1,000.

Customers are charged up to £1.50 for each withdrawal made on the machines, which are usually located in service stations and convenience stores.

But not everyone believes that regulation is the right answer.

Nationwide Building Society has been a prominent campaigner for clearer identification of fee-charging cash machines, going so far as to recommend a proposed code of practice, but says that regulation would be a step too far.

Stuart Bernau, Nationwide executive director says the growth of charging machines and the lack of transparency about charges are serious issues for consumers, but its too early to consider regulation.

?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,' he said.

In its code of practice, Nationwide recommends a £1.50 cap on ATM charges, clear and prominent warnings of any charges, and that all non-financial transactions should remain free.

Earlier this year, HBOS sold 816 of its cash machines - most of its ATMs not located inside of its branches - to independent operator Cardpoint in a £75m deal.

Abbey has also sold some of its cash machines to an independent ATM operator, while Royal Bank of Scotland recently acquired Hanco, an operator of fee charging cash machines.