MSE News: Charge-free basic bank accounts unveiled

"A basic bank account with no fees for failed payments has been unveiled by the Government today..."
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Charge-free basic bank accounts unveiled

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  • edited 15 December 2014 at 11:37AM
    fermifermi Forumite
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    edited 15 December 2014 at 11:37AM
    Free/impartial debt advice: National Debtline | StepChange Debt Charity | Find your local CAB

    IVA & fee charging DMP companies: Profits from misery, motivated ONLY by greed
  • Archi_BaldArchi_Bald Forumite
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    You got to wonder whether this would ever have happened if it wasn't for the impending
    1. EU legislation
    2. general election

    I guess it's a bit of both, and great news overall for those who want to make an effort to get on top of their finances.
  • agrinnallagrinnall
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    Too slow!

    http://forums.moneysavingexpert.com/showthread.php?t=5134618

    (Well done fermi for getting in first).
  • SystemSystem Forumite, Community Admin
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    Let's be honest; most of these accounts have no paper based facilities (i.e. Chequebooks) so there will be minimal human intervention in these refusals and the true cost of refusing Direct Debits is likely a few pence.

    I suspect that the banks were given the choice of charging the true cost or nothing at all. If there was a disclosed true cost, then there would be pressure for the 'prime' account charges to reflect that...

    But that is me being cynical ;)
  • ConsumeristConsumerist Forumite
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    Archi_Bald wrote: »
    You got to wonder whether this would ever have happened if it wasn't for the impending
    1. EU legislation
    . . .
    Another good reason for consumers to think very carefully before deciding it might be a good idea to exit the EU.

    As irritating as the EU can sometimes seem to be, we consumers just might miss it.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
  • You have listed Nat West as one of the banks providing bank accounts in line with the EU Payment Accounts Directive.
    I have tried to open an account with Nat West today but because I am an undischarged bankrupt they have refused my request.
    Item 35 of DIRECTIVE 2014/92/EU OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 23 July 2014 says:
    Consumers who are legally resident in the Union should not be discriminated against by reason of their nationality or place of residence, or on any other ground referred to in Article 21 of the Charter of Fundamental Rights of the European Union (the ‘Charter’) when applying for, or accessing, a payment account within the Union. Furthermore, access to payment accounts with basic features should be ensured by Member States irrespective of the consumers’ financial circumstances, such as their employment status, level of income, credit history or personal bankruptcy.
    I have pointed this out to a person in the branch I went to and to customer support on the telephone and I have been advised that they do not offer any kind of bank account to an undischarged bankrupt.
    This means that they are not following the terms of the directive.
    Are you prepared to question then on this as you are publishing information on your website that Nat West is one of nine banks offering bank accounts in line with the EU Payment Accounts Directive. But this is obviously not there case.
  • societys_childsocietys_child Forumite
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    Furthermore, access to payment accounts with basic features should be ensured by Member States irrespective of the consumers’ financial circumstances, such as their employment status, level of income, credit history or personal bankruptcy.
    Don't think this means that Nat West have to give you or anyone an account, they can choose who they wish to do business with.
  • BMNBMN Forumite
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    Natwest don't have to yet.
    Gov.UK wrote:
    The government is required to have implemented PAD in the United Kingdom by 18 September 2016 to meet its treaty obligations and avoid the risk of facing legal proceedings as a result of infraction.
  • SnowTigerSnowTiger Forumite
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    BMN wrote: »
    Natwest don't have to yet.

    I think Natwest's Foundation account is their offering.
  • colstencolsten Forumite
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    Rosehip54 wrote: »
    You have listed Nat West as one of the banks providing bank accounts in line with the EU Payment Accounts Directive.
    I have tried to open an account with Nat West today but because I am an undischarged bankrupt they have refused my request.

    There are three possible explanations I can think of why they turned down your application:
    1. the bank staff are badly informed and not aware of their new Foundation account. Badly informed bank staff is, unfortunately, not uncommon. You can raise a complaint with Natwest if you think this might be the reason

    2. there is something that made Natwest conclude they do not want you as a customer. This is their right, and all you can do in this case is try another bank

    3. you have a CIFAS fraud marker. Did you check your credit history before you applied? If you have a fraud marker, you won't get an account with any UK bank, not even under the EU Payment Accounts Directive. All you can do in this case is try and get the fraud marker removed.
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