Natwest customers could have option of paying monthly fee
April 1, 2008
Customers of one of the UK’s leading banks could be given the option of paying a monthly charge on their current account in exchange for lower fees and charges when they exceed their overdraft limits, according to recent reports. Like other banks, Natwest charges a hefty fee to customers that exceed their credit limits, and for many customers these fees quickly add up, amounting to a substantial sum each month. Natwest claims that this option could help some customers to cut back on the amount that they have to pay in charges each month.
The offer of a monthly charge is being made to a number of customers that either go regularly over their overdraft limit or come very close to exceeding their overdraft limit on a regular basis. The fee applied to the accounts of those that wish to take up the offer would be £10, and this would enable the customer to enjoy lower charges on overdraft fees. Penalty fees with the bank stand at £28-£38 at present, but for those that decide to opt for the fee based account these charges will be reduced to £17.
Consumers that re thinking of taking up this offers have been warned by consumers campaigners that signing up to the deal could mean that they are no longer eligible to reclaim any bank charges, however, and that the customers should therefore think carefully before deciding to opt for the fee charging account.
One official from Which? stated: ‘The £10 monthly charge is effectively insurance for going beyond your overdraft limit. The best advice is for people not to get in this situation in the first place and contact their bank if they know they will have to go over their limit. But if they do accept this there is a danger that they may only be able to claim back the reduced charges that have been taken, whereas bank customers are successfully claiming back their full bank charges.’
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