Tesco Bank and Virgin Money want everyone to charge for current accounts

lr1277

According to a newspaper roundup on the Redmayne-Bentley site, Tesco Bank and Virgin money have told the CMA, that the CMA should force a change to make current accounts fee paying accounts.
Details here:


http://www.redmayne.co.uk/research/newsView.htm?nID=153242

Ifts

Read about this on ThisisMoney.co.uk also -

http://www.thisismoney.co.uk/money/markets/article-2826650/Ban-free-accounts-say-Tesco-Virgin-banks-Watchdog-urged-force-Big-Four-start-charging-services.html

apt

I'd like to see the politician who agrees to any recommendation for compulsory charging for current accounts. Obviously someone who doesn't want to be re-relected.

jimjames

apt wrote: »

I'd like to see the politician who agrees to any recommendation for compulsory charging for current accounts. Obviously someone who doesn't want to be re-relected.

It happened for investments with rdr so is possible but I guess a lot less people were affected.

planteria

there has been talk of current account fees being widespread for a long time...and the 'package' accounts are helping to take us that way. there are still plenty of ways round it at the moment though...such as paying £x into the account each month, and banks are likely to continue in this vein for the foreseeable

talexuser

Been on the cards for a long time since subsidising in credit accounts with huge and impenetrable overdrawn charges goes against current trends, and the recent competition inquiry is being talked about as the route to impose change.

Problem is the first bank to do it might lose a lot of custom, and if many follow soon then it begins to look like a cartel again.

stephennt

And some of the best accounts (e.g. 123) already charge a monthly fee. But I presume these accounts attract a wealthier crowd where the perks outweigh a £2 fee...

Archi_Bald

stephennt wrote: »

And some of the best accounts (e.g. 123) already charge a monthly fee. But I presume these accounts attract a wealthier crowd where the perks outweigh a £2 fee...

You do not have to be wealthy to eliminate the 123 £2 fee with cashback from DDs almost everybody would need to pay.

You also don't need to be wealthy to avoid the monthly charge on any of the other non-packaged accounts that currently come with a monthly charge. It does help if you can think slightly outside the box, though, and if you can and do read basic T&Cs.

stephennt

Totally agreed - I meant that the current paying accounts probably attract people who are more on top of their finances; you don't need huge amounts of money to cover the fees.

C_Mababejive

Well in that case i would also like to see a parallel change in the law which entitles me to be paid in cash for my salary/wages/whatever instead of surrendering my pay to institutions who then feel and behave as if it were their money and not mine.

Linton

Seems like a good idea to me to make charges transparent. Unfortunately the naive think they are getting something free now, which will be taken from them if charges were imposed. Running the nation's current accounts takes a lot of people and many large computers. This costs a lot of money. It is being paid for by lower interest returns and higher charges elsewhere than would otherwise be the case.