Banks threaten to close accounts as charge row escalates
July 26, 2007 by admin
Filed under News, News-Banking
Account holders who have complained at seemingly excessive bank charges have been threatened with having their accounts shut down.
A study from This is Money, revealed by the website yesterday, showed that over one in eight of those who have tried to reclaim excessive bank fees have been subjected to the threat.
Extra charging by banks is a hugely controversial subject with British consumers. It was revealed last week that a total of £200 million has been paid back by banks so far this year, as customers assert their rights.
This is Money also claimed at the time that around 500 claims a day were being received at some banks, necessitating extra staff being brought in.
Regarding the latest controversy, chief executive of the Banking Code Standards Board Roger Skinner told the website: “Banks are allowed to close down accounts for commercial reasons. But they must also treat fairly any customers who are experiencing financial difficulties.”
According to the Banking Code, to which the banks in question are signatories, customers must be dealt with fairly when in financial difficulty.
Industry watchdog the Office of Fair Trading (OFT) extended its investigation into bank charges earlier this year. It is slated to report back in the autumn.
