Customers don’t want to pay monthly fees on bank accounts
September 19, 2007
According to the results of a recent survey, consumers in the UK would prefer not to have monthly fees applied to their current account, even if this puts an end to penalty charges that are currently charged by banks if the consumer exceeds their overdraft limit, and for returned cheques and direct debits.
There has been much controversy over bank charges over the past year, and many consumers have reclaimed these charges going back up to six years.
Although banks have been reluctant, most have received part or all of these charges back. However, experts have long since stated that banks will find a way to recoup these financial losses, and whilst the UK waits with bated breath for a decision from regulators and courts over whether the charges are lawful or not, banks are already thinking of alternative ways to get more money from the consumer to make up for losses made on the bank charge side.
According to officials the introduction of fee charging accounts seems to be high on the agenda with most banks, and this is where account holders will be charged a fee every month for the privilege of having a current account. However, a survey that was recently carried out suggests that this idea is not popular amongst customers, even though it could put an end to hefty bank charges for going over the overdraft limit, bounced cheques, and returned direct debits.
One industry professional stated: “We could well see the system prevalent in Western Europe, North America and Australia, where there are a certain number of free transactions and then you pay for any additional ones. We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers.”
Alan Wright
19th September 2007
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