MSE News: RBS punishes basic account holders in ATM crackdown

Saetana

Given RBS is mostly owned by the taxpayer then the government should do something to stop this, I've got a basic Halifax account and, as its the same groups of companies, am now wondering how long it will be before they do the same thing. There is only one Halifax in the City Centre and there is no Post Officer any closer. The government need to step in here as I can see other institutions following suit if nothing is done.

My husband is long term sick/disabled with multiple medical conditions which, unfortunately, fall into too many different categories for us to be eligible for anything other than higher rate income support. Due to a past bad credit history (combination of being young and stupid plus banks throwing credit cards around like candy) and our low income there is no way we can get any type of normal account and, given that benefits HAVE to be paid into a bank account, there is NO other option for people like us. We're not in debt anymore but have no credit score to speak of and the idea of my own bank following suit on the machine restriction is worrying.

Why the hell can't they make a small charge for machine withdrawals from other banks that would just cover the REAL cost of doing this? This at least would be acceptable to most people provided the charge was reasonable (our nearest machine belongs to no bank and costs £1.85 per transaction, ridiculous if one only wishes to withdraw £10-20, we only use it if we need cash in a hurry). Some people are likely to have to travel miles to get cash and then draw out far larger amounts than they would normally, which is a security risk in itself. I find this particularly annoying given the taxpayer bailout of RBS!

willo65

shadamehr wrote: »

It categorically beggars the blatantly obvious question...

If Select Silver can be "Credit Restricted", just like Basic/Step can, why on earth can't "Select Standard" also be "Credit Restricted" if necessary/appropriate?

Why can you have a restricted version on Silver, but NOT a restricted option on Standard?

And of course the next point is, if you CAN have a Credit Restricted version of Select Standard, why are people being refused it as an upgrade from Step?

(The same people NOT being refused it on Silver, of course...)

If it was a credit restricted select account then that would be a basic account (which they already offer) so there is no need to have duplicate products.

When nw had advantage blue it was available as a bolt on to the step account so silver is the same.

jalexa

Saetana wrote: »

.
...Why the hell can't they make a small charge for machine withdrawals from other banks that would just cover the REAL cost of doing this? ...

Indeed. I do not know the actual current fee but on historical evidence I strongly suspect the Link "interchange fee" is no more than £0.30, perhaps less. If that is true that is a true indicator of the contempt banks that deny Link show for basic account customers.

However, that said, I'm puzzled at your "there is only one Halifax in the city centre". What is your point? That there is a queue at the "one" machine? Or perhaps there is not a convenient machine in your neighbourhood? If so is there a convenient Natwest/RBS machine in your neighbourhood? Or a Tesco with an ATM? In that case the solution is obvious, open a Natwest/RBS basic bank account.

Or a basic bank account with whichever bank has the most convenient ATM for you.

It has been flagged in this Forum that Halifax Visa Electron will become Visa Debit. I do not know whether Link will be removed but given that Lloyds TSB Cashpoint Visa Debits were already "non-Link" (with nary a peep from consumer "do-gooders"), I would not be surprised.

opinions4u

Saetana wrote: »

Given RBS is mostly owned by the taxpayer then the government should do something to stop this

Why? I don't remember Brown and Darling stating "now that we own large chunks of these banks we'll turn them in to an extension of the welfare state". The best things the banks can do for taxpayer is make profits and get their share prices up allowing the state to sell its shares at a profit. When that happens we are all winners.

I've got a basic Halifax account and, as its the same groups of companies, am now wondering how long it will be before they do the same thing. There is only one Halifax in the City Centre and there is no Post Officer any closer.

Halifax is not part of Royal Bank of Scotland. It's part of Lloyds Banking Group.

The government need to step in here as I can see other institutions following suit if nothing is done.

And people can choose to bank with whoever they like, whoever has the most convenient ATM network. They can even have accounts with more than one bank.

there is NO other option for people like us. We're not in debt anymore but have no credit score to speak of and the idea of my own bank following suit on the machine restriction is worrying.

There are numerous options. Change bank. Have accounts with more than one bank. Use cashback in the supermarket, pub or other stores. Use Faster Payments to move money from bank with inconvenient ATM to bank with handy ATM.

Why the hell can't they make a small charge for machine withdrawals from other banks that would just cover the REAL cost of doing this? This at least would be acceptable to most people provided the charge was reasonable (our nearest machine belongs to no bank and costs £1.85 per transaction, ridiculous if one only wishes to withdraw £10-20, we only use it if we need cash in a hurry).

When banks last charged for LINK transactions they got slated for it.

I find this particularly annoying given the taxpayer bailout of RBS!

If you really don't like banks propped up by taxpayers try HSBC, Santander, Barclays, a local building society, Co-op etc. There is choice out there, even for people who trashed their credit file.

System

The government (and hence us taxpayers) are shareholders in the RBS group of companies. So, anything the RBS group can do to increase profits and become more stable is a benefit to us shareholders and will result in a quicker payback.

This change of access to ATMs is one step towards a more profitable bank which everyone with any sense should be grateful for.

notts_phil

Opinions4u is completely right!

Many people who can't handle credit seem to have forgotten their local building society as an option!!

brambram

hi all
just recieved my letter, telling me my bank account has been changed gutted
looking to move accounts, its such an inconvienience. I have been happy with this account for years.
surely rbs should be happy to have money moving through its banks, and not so happy with the amount
of customers about to shift it. I have no reason to stay with rbs now. looking through the thread for suggestions.

JuicyJesus

brambram wrote: »

surely rbs should be happy to have money moving through its banks, and not so happy with the amount

Basic bank accounts lose them money, whether money goes through them or not (indeed, money going *through* them is part of why they're a lossmaker).

If all of their Key/Basic account holders were to leave them overnight they would spoo themselves with sheer joy.

jalexa

brambram wrote: »

hi all
I have no reason to stay with rbs now.

Well actually you do. As the previous poster says "rejoice" in having a "loss making" account, as I do with several banks.

Specifically in the case of Natwest/RBS you have access to quite a large number of Group ATMs included ATMs installed at Tesco branches and (now) cash at Post Office counters. Are Post Offices not worth fighting for on a "use them or lose them" basis?

So I would definately keep the Natwest/RBS Basic account but by all means look to another bank. Not of course Lloyds TSB who already block Link access. Who would bet on something different when HBOS replace Visa Electron with (I assume) Visa Debit.

coolesticeking

I understand what people say at they are making a loss from basic accounts but i'm confused as I have a Classic account with Lloyds TSB & a Current Plus account with NatWest.

Since i've had the accounts i've never been overdrawn, never had a charge and don't even have any other products from these two banks.

So I must be a loss leader also but they have not made any changes to ATM usage with these accounts or plan to do so?

So what am I doing that people with basic accounts are not to make them lose money by having the basic bank accounts?