RBS reduces overdraft Charges
Royal Bank of Scotland yesterday announced that they are slashing their hefty overdraft charges, and becomes the first big bank to do so.
The NatWest owner, having been bailed out by taxpayer’s money, broke ranks by announcing that their fees will be reduced thus challenging rival bank charges.
The move has been seen as a welcome break for recession hit customers, who more than often become victim of going into the red as debt continues to grow, however, the news has also surprised the financial industry, as the announcement comes ahead of a court ruling regarding charges and whether up to now these have in fact been a rip-off.
RBS’s announcement yesterday will not affect previous charges the bank imposed, but from next month; it will charge £5 instead of £38 for a bounced cheque, direct debit or standing order if someone is overdrawn without agreement; the fee for allowing a payment to go through – at the bank’s discretion will be £15 no longer £30; the monthly charge for unauthorised overdrafts will drop from £28 to £20; and interest on any balance will be 19.24%.
Campaigners awaiting the outcome of the House of Lords’ test case regarding bank charges have given the RBS move a cautious welcome.
Sources;
Google/ Business/ News
Mirror.co.uk/ News (RBS finally cuts hefty overdraft charges)