FCA 'won't stand in the way' of an end to free banking, says boss

icsys

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

jameseonline

Sorry are banks saying they going to end up poor if they don't start charging? 🤣

DullGreyGuy

icsys said:

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

Or process all the pointless letters people are sending about DCA encouraged by irresponsible journalism trying to whip up the masses. The FCA have already stated that they think journalists are wrong when comparing it to the size of an issue as PPI and the banks weathered that storm without introducing charges for standard accounts. 

Nasqueron

icsys said:

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

The FCA haven't even decided if anyone was miss-sold car finance and it's rarely (if ever) the high street banking arm of the firm that is directly affected. Even if the FCA rules that DCA should result in some form of refund, the finance firms like Black Horse or VWFS will simply pass on the costs to future customers

p00hsticks

Perhaps as a first step to cutting costs  they could put an end to all these switching payouts....

Lightning360

icsys said:

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

Wouldn't take much for one bank to not charge fees and have customers flock to them

HappyHarry

Lightning360 said:

icsys said:

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

Wouldn't take much for one bank to not charge fees and have customers flock to them

That’s what started free retail banking in the first place. I think it was Midland Bank (now HSBC) that started free current accounts.

Hoenir

As far as banks charging the UK is an outlier globally. At the moment other services subsidise retail current account banking. 

[Deleted User]

HappyHarry said:

Lightning360 said:

icsys said:

Looks like the City Watchdogs have paved the way for banks to charge customers for current accounts in an end to free banking.

The FCA have stated the regulator would 'not stand in the way' of banks opting to charge customers to hold accounts. 

While some providers already impose fees to maintain certain accounts that offer added benefits, the majority of current and savings accounts are fee free.

This is, apparently, in response to the banks being concerned about spiraling costs in the wake of regulatory changes.

Maybe more truthfully they want customers to off-set the massive bills they face to compensate consumers who were mis-sold and overcharged for car finance.

Wouldn't take much for one bank to not charge fees and have customers flock to them

That’s what started free retail banking in the first place. I think it was Midland Bank (now HSBC) that started free current accounts.

It was available free before Midland via other providers.

Even in markets where there are fees (e.g. USA) a large number of providers waive them for certain balances or deposit salary payments.

Grumpy_chap

[Deleted User] said:

Even in markets where there are fees (e.g. USA) a large number of providers waive them for certain balances or deposit salary payments.

Oddly I was going to mention the accounts that require a certain amount to be deposit each month as a driver towards scrapping free banking.  That view is based upon the threads that appear in these forums by people who hold several of these accounts requiring £x deposit every month and having income much less but cycling the same money around the several accounts in a never-ending loop just to meet the qualifying criteria.  All those transactions don't generate the banks any revenue yet all cost to process.

ZeroSum

Grumpy_chap said:

[Deleted User] said:

Even in markets where there are fees (e.g. USA) a large number of providers waive them for certain balances or deposit salary payments.

Oddly I was going to mention the accounts that require a certain amount to be deposit each month as a driver towards scrapping free banking.  That view is based upon the threads that appear in these forums by people who hold several of these accounts requiring £x deposit every month and having income much less but cycling the same money around the several accounts in a never-ending loop just to meet the qualifying criteria.  All those transactions don't generate the banks any revenue yet all cost to process.

This little community on here who do this is pretty much the minority. Most people have just the one account & keep decent balances in them which doesn't earn any interest