Sky News - Fee free basic accounts - Treasury To Unveil 'Landmark' Bank Agreement

fermi

Treasury To Unveil 'Landmark' Bank Agreement

Ministers will next week hail a "landmark" deal with Britain's nine biggest lenders to offer millions of consumers a new fee-free basic bank account.

Sky News has learnt that the Treasury will announce on Monday that the banks will establish accounts which end charges - whcih can be as high as £35 per item - for failed direct debit or standing order payments.

The new product will be provided by institutions which between them have more than 90% of the current account market, and will be available to people who are not eligible for a bank's standard current account and either have no bank account, or cannot use their existing accounts because of financial problems.

The participating lenders - which have agreed to launch the accounts by the end of next year - are Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group, National Australia Bank (which owns the Clydesdale and Yorkshire), Nationwide, Royal Bank of Scotland, Santander UK and TSB.

Full article in link above.

agrinnall

So the rest of us will have to pay the costs incurred by the banks by the people who open these accounts then fail to manage them properly?

thebritishbloke

agrinnall wrote: »

So the rest of us will have to pay the costs incurred by the banks by the people who open these accounts then fail to manage them properly?

I'm presuming they're just going to have Barclays Cash Card style accounts, where people aren't allowed to be overdrawn. I don't think they're charged right now for having a failed DD in the bank account, but the receiving party will still be able to charge them.

10pence

Can see the banks introducing or reintroducing strict rules with these, such as HSBC's old rule for BBA accounts of the 3 strikes and your out.

pmduk

I think you'll find the Barclays cash card account does attract charges for failed transactions.

ETA
They do

chanz4

noticed NatWest not present or rbs

knack92

chanz4 wrote: »

noticed NatWest not present or rbs

Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group, National Australia Bank (which owns the Clydesdale and Yorkshire), Nationwide, Royal Bank of Scotland, Santander UK and TSB.

No doubt NatWest will be included but not listed separately.

fermi

chanz4 wrote: »

noticed NatWest not present or rbs

The article states Royal Bank of Scotland is participating.

A_Flock_Of_Sheep

It does not need a landmark occasion and a new product.

Banking is fee free if you aren't stupid and careless with your money and let items bounce.

The Government should plough their efforts into financial education for those who can't manage their money properly.

I am glad I am with a Building Society not included in the 9 lenders here.

stclair

It's hardly a land mark ruling as most banks offer basic bank accounts anyway. It just seems the lenders are being asked not to charge customers for bounced items and to be more laxed in the account opening criteria.

I think if these account types are going to be exempt from charges then the bank should report the failed transactions to the CRAs. As its a true reflection of how the account has been managed.

Blackpool_Saver

I wonder if this will bring about another 'claim back bank charges' chance