NatWest and Royal Bank of Scotland customers will pay lower bank charges following a move that has been welcomed by Which?.
RBS Group has introduced its new fees structure ahead of the pending bank charges court case decision, also due in October. The recently introduced Supreme Court is considering whether the Office of Fair Trading can regulate bank charges, or whether the banks are beyond the OFT’s remit.
From 1 October, the charge for making an unauthorised overdraft will be halved to £15 and the fee for returning a cheque, direct debit or standing order will be limited to £5. Currently, customers could be charged up to £114 per day for unauthorised borrowing. This will be reduced to a maximum of £50 a month.
RBS one step ahead of the competition
Brian Hartzer, CEO of the RBS UK retail banking division, said: ‘This is good news for customers, not least because the fees for unarranged borrowing have been an area of ongoing concern for them. As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges.’
Which? bank charges campaign
Which? chief executive Peter Vicary-Smith said: ‘This is a step in the right direction and a victory for consumer pressure. However, if RBS and NatWest truly want to get back in their customers’ good books, they should admit defeat in the bank charges test case and repay the millions of pounds they’ve been unfairly taking from their current account holders for years.’
Which? has campaigned on bank charges for several years. Consumers can learn more about how to claim back unfair bank charges by visiting the Which? Campaigns webpage.
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