thomas davison
Party Leader
Joined: 03 Jun 2005
Posts: 4018
Location: northumberland
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 Posted: Fri May 25, 2012 7:59 am Post subject: THE END OF FREE BANKING IN UK, TAKE YOUR MONEY OUT NOW |
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Is this the end of free banking? Watchdog calls for a monthly fee for ALL accounts
By Sean Poulter
PUBLISHED: 00:21, 25 May 2012 | UPDATED: 00:23, 25 May 2012
Bank customers should be charged a monthly fee on current accounts even if they are in credit, according to a finance industry watchdog.
Charges of �15 a month could be applied, allowing a fixed number of cash machine withdrawals, direct debits, standing orders and cheques. Any transactions beyond these caps would attract extra charges.
The idea comes from Andrew Bailey, executive director of the Bank of England and the chief executive-elect of the Government's Prudential Regulatory Authority, set up to police the banks.
Free banking: Andrew Bailey, executive director of the Bank of England, described it as a 'myth' as it distorts the supply of banking services
He said up-front fees should form part of a radical shake-up of the current system in which the 'myth' of free banking is perpetuated.
He suggested that the fees would replace a regime of back-door charges which banks use to make money from ordinary customers.
The fact that banks pay little or no interest on credit balances in current accounts amounts to a stealth charge.
Separately, customers are stung with high interest rates and penalty charges on credit cards, loans and mortgages.
Mr Bailey suggested one benefit of the fees would be that banks would be less inclined to rip off customers through the mis-selling of products and services such as payment protection insurance.
In a speech to the Westminster Business Forum, he said it would be difficult for banks to introduce monthly charges 'without appearing to collude'.
Andrew Bailey: Pushing for an end to free banking in Britain
Consequently, he said, the Government or its agencies may need to take action.
'It may require intervention in the public interest, not least because it is a way to encourage greater competition,' he said. But Labour Treasury spokesman Chris Leslie MP said: 'It's vital that George Osborne's new regulator is on the side of ordinary savers, who trust the banks with their money and allow the banks to use their deposits to make a profit to cover the costs of their accounts.'
Official customer body Consumer Focus said: 'What mustn't happen is that consumers end up with the worst of both worlds � paying for accounts but still enduring unfair charges, opaque products, mis-selling and poor customer service.'
Which? executive director Richard Lloyd said: 'It's a complete myth that banking is free now � consumers pay more than �9billion a year in fees and lost interest on their accounts.
'The idea that if banks charged more, they would stop trying to mis-sell other financial products is completely unfounded
BREAKING NEWS. Rich banker calls for the end of free banking so rich bankers can become richer. AND as for the supposition that this will stop banks mis-selling and interest on savings will increase, my ar$e. They'll introduce charges and still shaft you. AND, given the average fee in Europe is around �70 per year, what's �15 per month here all about?.
The banks have you where they want you, all your pay goes into banks, bills come out of banks, banks give you nice little cards so that you can run up massive debts, banks own you.
Now for the good news, if everyone took their money out of the banks and had their companies pay them in cash the man in the street would be king of his cash once more. The banks would be on there knees, no more huge bonuses or pay, who needs them they only get the country in a mess which we do not need, take your money back and tell these thieves to get a proper job. |
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