Natwest and RBS are among the high-street
banks to reduce their unauthorised overdraft fees.These fees, which previously could total a maximum of £6,688
each month, are charged when a bank customer exceeds their agreed overdraft
limit.The Natwest and RBS
fees have now been lowered to a maximum of £15 per day which, whilst you still
have the potential to rack up £450 per month if you do not keep a tight rein on
your spending, is a significant improvement.
These changes have been implemented ahead
of a decision by the Supreme Court about whether the Office of Fair Trading
(OFT) has the jurisdiction to regulate the consumer charges put in place by
banks.Although the final
decision has not yet been made, banks have not so far been successful in
contesting the rulings.The banks'
decision to reduce the charges may therefore be a way of pre-empting the court
order to make their charges more consumer-friendly.Either way, it is a step forward for the consumer, and the
decision puts pressure on other major banks to do the same.
In addition to reducing the charges of
exceeding an overdraft limit, Natwest and RBS are also reducing the costs of administration
for a 'bounced' cheque, direct debit or standing order to £5 from £38 and the
account maintenance charge from £28 to £20.Announcing the changes yesterday, the new CEO of the UK
Retail Bank, Brian Hartzer, said: "This is good news for customers, not
least because the fees for unarranged borrowing have been an area of ongoing
concern for them.
