New charge structure announced by Alliance and Leicester

 

May 29, 2008

Another bank in the UK has announced its plans to change its charging structure following Lloyds TSB’s recent announcement of fee changes. The Alliance and Leicester has announced that it will no longer be charging interest on its overdrafts on current accounts and will also be reducing some of its other charges. The charge for a bounced cheque will now be reduced from £34 to £25. However, although the bank is to get rid of interest charges on current account overdrafts there will be daily charges that are brought into force, so many customers may find that they are no better off.

Some banks have already announced plans to change their interest and charge structures, many as a result of the current controversy that is being investigated by the Office of Fair Trading. However, Alliance and Leicester officials state that they had planned to make these changes well before the investigation by the Office of Fair Trading began. Under the new charging structure customers that are using an authorised overdraft will be charged fifty pence per day up to a maximum of five pounds per month. For those breaking into an unauthorised overdraft the charges will be five pounds per day until the account is back in order.

Banking for those that keep their accounts in credit will continue to be free, state Alliance and Leicester officials. One of the bank’s officials stated: “The combination of fees and interest is unnecessarily complex when you are trying to present your business as simple.” Another industry professional stated: “Customers should ask themselves whether the new simplified fee structure does actually save them money in the long-term. According to our analysis, the new way of charging will result in Alliance & Leicester customers being marginally better off.”

Recent additions

Written by admin · Filed Under Banking 

Comments

Got something to say?