High street banks need to be clearer regarding the amount they are charging people for actions such as going overdrawn without permission, an industry expert has suggested, following the decision by two lenders to reduce their fees.
According to Andrew Hagger from Moneynet.co.uk, the move by Natwest and the Royal Bank of Scotland is a positive one for the consumer, but the institutions still impose five different categories of charge – an indication that those in debt who are struggling to manage their money may still be at risk.
“This move has come as a surprise as any pricing changes by the banks was not expected until the bank charges case was decided,” he said.
At the beginning of September, the Financial Services Authority published complaints figures taken between 2006 and 2008, revealing that issues with banking and loans products accounted for more than half of all dealings brought to the organisation.
By Sarah Adie