Free banking under threat, says BBA
August 6, 2007 by admin
Filed under News, News-Banking
Banks in the UK might introduce wide-ranging extra charges on current accounts, the British Bankers Association (BBA) said today.
The BBA said that the charges, likely to be fiercely contested by consumer groups, will bring the UK into line with regulations in the US, Australia and Europe.
Charges would include fees being levied to write cheques, to pay bills by direct debit and even to use cash machines.
According to a BBA, spokesman, the new fees would “follow patterns abroad where banks charge for transactions such as ATM use, direct debits and standing orders, in addition to an annual fee.”
The statement could be seen as a reaction to the bitter battle banks are currently locked in with customers and the Office of Fair Trading (OFT), over what is seen as their “unfair” charging procedures.
The Financial Services Authority (FSA) is currently investigating banks’ overdraft charges, and will release their findings in the autumn.
