Banks agree to voluntary crackdown on charges
The major high street banks have agreed to make overdraft charges fairer and more manageable, the Department for Business, Innovation and Skills (BIS) reported. But consumer bodies criticised the moves as "disappointing".
BIS said banks have signed up to a voluntary agreement that will apply to all full-facility current accounts. Balance alerts – which will warn customers when they are close to overdraft charges – will be introduced from March 2012.
Other measures, including annual charges statements and a buffer-zone – which will mean no charges if customers go over their limit by a small amount – will be introduced by March 2013. Barclays, HSBC, Lloyds, Royal Bank of Scotland and Santander have signed up to the agreement.
But Mike O'Connor, the chief executive of Consumer Focus, said: "It is disappointing that these measures are voluntary and that there are no plans to legislate to protect consumers from the effects of unfair bank charges."
Which's Richard Lloyd said the move would not persuade customers that banks are starting to play fair. "Although this is a step in the right direction, we know that people don't trust banks," he said. "Customers will need to be persuaded that any voluntary agreement to improve overdraft charges will actually deliver the promised benefits."
The Government also announced a crackdown on expensive store credit cards, including a ban on direct commissions for sales staff.
- 1 Student jailed for hacking University of Birmingham computers to improve his grades
- 2 Smartphones are making children borderline autistic, says psychiatrist
- 3 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 4 Teaching profession headed for crisis as numbers continue to drop and working lives become 'unbearable'
- 5 The most powerful passports in the world
Student jailed for hacking University of Birmingham computers to improve his grades
Smartphones are making children borderline autistic, says psychiatrist
Nepal earthquake: More than 1,100 killed across four countries and in Mount Everest avalanche
Royal baby: Live updates as the wait continues for Duchess of Cambridge's second child
Hermann Goering's daughter fails to reclaim items looted by Nazi deputy during WWII
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
Rupert Murdoch berated Sun journalists for not doing enough to attack Ed Miliband and stop him winning the general election
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...