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Curb to charges could mean increase in bank fees

September 13, 2008 by admin  
Filed under News, News-Banking

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Britain could see an end to free banking in the near future depending on what happens with the banks charges case, and whether the fees that banks are allowed to charge for overdraft fees and charges can be curbed. If the charges are cut then banks and other financial institutions may decide that they are going to try and recoup the costs by imposing hefty service fees and charges elsewhere.

A recent high court test case was brought against a number of banks by the Office of Fair Trading, which claims that the banks are claiming unfair and unjust charges in terms of overdraft fees.

Officials from the British Banker’s Association said, however: ‘It is important that this model, which is what customers have asked for – free for their normal banking, does remain. We are worried that the OFT seems to be challenging that.’

The BBA added: ‘Do you really want to pay for ATM use, pay for statements, pay for direct debits in this country?’

Another industry group said: ‘There is a systemic problem. All of the banks have moved towards charging us more and more for things we can’t see. Banking is not free, it is costing us £150 a year. Because we can’t see how much it costs, we can’t compare and switch properly.’

The National Consumer Council said: ‘The OFT has delivered a devastating critique of this market, which has too long failed consumers.’

Another official said: ‘If and when the decision is made to cap unauthorised overdraft fees, it is inevitable that we will move towards paying monthly fees for personal banking.’

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  1. Gas bills could rocket within the space of a year says:
    September 13, 2008 at 9:56 pm

    [...] Curb to charges could mean increase in bank fees [...]



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