UK set to resist ‘pay-as-you bank’ fees

An overwhelming majority of British consumers would resist the introduction of pay-as-you go banking fees, according to recent research.

Figures from Moneysupermarket show that a full 91 per cent of Britons would not want to see the kind of banking fee structures that are commonplace in various parts of Europe and North America.

However, experts from the financial comparison firm suggest that pay-as-you-go banking could be brought in anyway, because of the revenue reductions banks are expecting to result from restrictions on their penalty fee processes.

“At the moment, free banking is possible largely because of the number of people who are hit with fees and charges,” said Kevin Mountford, head of current accounts at Moneysupermarket.

“The Office of Fair Trading’s clampdown on this, together with politician Andrew Tyrie’s call for more transparency in charging, could well be moving us closer to a pay-per-transaction system – but one that Britons will resist.”

David Mond, chief executive of ClearDebt, said recently that banks have been deliberately seeking to deter British consumers from entering an Individual Voluntary Arrangement as a way of finding a debt solution.