MSE News: Bank Charges slashed by RBS/Natwest

Rich66

Hi, this is very intresting news as a Nat West customer who when the next charges are taken out for 'failed DD's' will have paid just over £1000 from may to Sept. in charges, mostly at £38 a shot for each missed one. Coming out soon is £228 for just 6 tranaction, 3 on the same day.

Obviously reducing this cost to just £5 each one is good news (£50 max a month). I did complain at the branch the in June, and got a letter back saying 'nothing we can do '. With this announcement I wonder what the reaction will be for the lot I list above ?
I do not have an overdraft with them, does the announcement allow the reimbursement process to commence ?

Toe-Jam

No mention of the third member of the group Ulsterbank as usual. But they too are reducing their charges in line with the other 2 banks.

esmerellda

The change in charges is for future only and does not have any bearing on refunds. however I think if you hve been charged massively in the last couple months you could try appealing to them on hardship grounds and try push them to at least give you back the difference (whilst keeping the rest of your claim on hold for end of test case nturally)

hmltnangel

This is all very well, but what about customers of HBOS/Lloyds......

My other half is a member of staff there and they have been notified of the changes they will be implementing.........

Basically all debit interest, unathorised OD fees and returned item fees will be removed from accounts.

the only charge you will incur is as follows:

If you stay within an arranged Overdraft up to £300 then you will escape charge free

if you go to £300.01 overdrawn (even if its within an agreed limit) then you will be charged £1 per day you are overdrawn.

this is good news for people who incurred lots of charges every month but for people who may have a £350 overdraft and use it most of the month then you will incur up to £30 charges each month regardless if any items are returned or not.

I know i'm not alone in thinking its a rip off.

If I can get copies of the details i will post them up here but this is why ALL HBOS customers were issued amended terms and conditions to their current accounts recently. they will recieve notification of the charging structure changes during October.

RuthnJasper

Well, it is nice to have SOME good news for a change. I can only assume the banks have finally conceded that the writing is on the wall as far as the OFT case and appeals are concerned and are trying to salvage their reputations as best they can; before the mega-publicity deluge surges forth when millions (or billions) of fees have to be automatically repaid.

I expect the media fallout will be HUGE. On the one side will be us reclaimers: "Because of the bank's fees, Ruth was so poor and hungry that she was forced to have babies only to provide a cheap alternative to Turkey at Christmas..." (c/f Blackadder's Xmas Carol). On the other side, the banks - whose line will no doubt be: "Here is Pam, who has worked for 666Bank for 25 years and her sweet kiddies. She has lost her job because the bank couldn't afford her salary what with all these customer payouts and now she, her honest husband and little Johnnie and Katie will all starve because of our unreasonable customers and the cruel OFT... Also, chairman and governors' bonuses this years slashed to six figures - examine your consciences, evil little customers..." ;-)
I'll bet my pension that these sorts of stories will be RIFE in the press any day soon.

However, I, for one, am cheered by this news. I know there are STILL charges - and nothing is ever 100% perfect - but there's so little to smile about in this whole grubby affair, that I'm willing to join Jasper-dog in a little dance of delight around the living room over this development... :-)

esmerellda

Interesting - however I'm pretty sure there'll be more to it for unauthorised overdrafts or its pointless having an agreed overdraft above £300 ?

Current terms =

The first £300 of any arranged overdraft is interest-free (0% EAR). Typical 19.5% EAR variable on arranged overdrafts over £300. Whether you can have an overdraft and the amount will depend upon your personal circumstances at the time you apply for one. Any overdraft we agree is subject to status.

Also

BBC_December_2008 wrote:

The standard set of overdraft fees, including interest charges, will be replaced by daily fees of £1, £2 or £5 when people are in the red.
The charges will start with the launch of a new account on 9 February 2009.
But most existing accounts will be moved to the new charging structure later in the year

and

The new account, dubbed the "Reward" account, will abolish the current interest charges for people in the red.
Also disappearing will be the existing overdraft fee of £28 per month, and the maximum three charges a day of £35 each for paying or bouncing cheques, or making other payments, while in the red without permission.
Instead, customers with an arranged overdraft of up to £2,500 will pay £1 per day; those with a higher arranged overdraft will be charged £2 per day; and anyone with an unarranged overdraft will have to pay £5 per day.
The new account will also be credited with a standard after-tax interest payment of £5 per month, regardless of how much is in the account, so long as at least £1,000 a month has been paid in by the account holder, and regardless of whether the account then goes into the red or not.

The new T&Cs were issued by most banks due to the PSD (payment services directive).

bravotwozero

Does this apply to One Account customers also?

hmltnangel

Just got confirmation of the new charging structure from the missus.......

Balance of overdraft
Fees when customer uses an overdraft
Arranged overdraft up to £300
No daily fee
Arranged overdraft between £300.01 and £2500
£1 a day
Arranged overdraft over £2500
£2 a day
Unarranged overdraft
£5 a day


remember these are for Halifax/bank of Scotland Accounts not RBS ..... only posted in here by accident as I was reading about the RBS charge amendments......

esmerellda

Is this the Reward Account charges being Rolled out over all the accounts ?

robert_m_2

Does that include LLoyds/TSB as well?