RBS cut unauthorised overdraft transaction fees to £15 (from £30)

[Amethyst]

Unpaid Direct Debits and Cheques will cost even less at £5. We're awaiting full terms before passing opinion.


Current Terms - http://www.natwest.com/content/globa...s_Interest.pdf - these are being updated and the new terms/fees come into effect 1st October.

NEW RBS-NATWEST CHARGES
Bounced cheque, direct debit or standing order - £5, down from £38
Payment on overdrawn account - £15, down from £30
Guaranteed card payment fee - £15, down from £35
Maintenance charge - £20, down from £28
Overdraft interest rate - reduced to 19.24%

Source: RBS

Banking group RBS-NatWest - majority owned by the taxpayer - has broken ranks with the rest of the industry and decided to slash its overdraft charges.
The move comes ahead of a decision of the new Supreme Court on whether or not the Office of Fair Trading (OFT) can regulate these charges.
From 1 October, RBS and NatWest customers will be charged only £5 for having a cheque bounced, down from £38.
The fee for paying an item on an overdrawn account falls in half to £15.
"This is good news for customers, not least because the fees for unarranged borrowing have been an area of ongoing concern for them," said the chief executive of the bank's UK operations, Brian Hartzer.
"As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges.
"As it relates to past charges we are awaiting the outcome of the industry-wide bank charges test case ," he added.

UPDATE FROM RBS SITE -

Important Changes to Unarranged Overdraft Pricing

We recently announced that we will be reducing the amount of our fees and charges in relation to unarranged borrowing and unpaid items as follows:
Summary of fee changes






The above changes will be made to Section 7 of our leaflet ‘Personal and Private Banking – A Guide to Fees and Interest’ and will alter the terms of the contract between us and you. These changes will come into effect on the first day of your charging period following 1 October 2009 (the first day of your charging period is normally the day after we issue your statement). The changes apply to all our Personal and Private Banking current and chargeable savings accounts unless otherwise stated.

You will continue to receive at least 14 days notice before any unarranged borrowing or unpaid item fees are taken from your account.

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

This scans with the arguments put forward in the test case by the OFT that 'not paying' something has less cost than paying something in an unauthorised position.

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

07th September 2009 news release



NATWEST AND RBS CUT THE PRICE OF UNARRANGED BORROWING

Unpaid item fee cut to £5


NatWest and RBS today announce that they are to significantly reduce the charges for customers who go overdrawn without agreement or exceed an agreed overdraft limit. The cuts, which will be effective from 1st October, will see the fee for returning a cheque, direct debit or standing order cut to £5. The fee for paying an item when overdrawn will be cut by half to £15 per day.

Announcing the moves, 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. As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges.

At RBS our support for our customers must be at the core of all that we do as we work to return the bank to standalone strength. We are changing what we do as a bank and the way we do it. Today's announcement is one more example of the determination we have to support our customers.
As it relates to past charges we are awaiting the outcome of the industry-wide bank charges test case. Our aim, which has remained unchanged throughout the case, has been to gain legal clarity around this issue and we remain fully committed to it through the legal process.”
Details of the reductions are:
Unpaid item fee reduced to £5 from £38 (maximum £50 per month, reduced from £114 per day)
Paid referral fee reduced to £15 from £30 (maximum £90 per month)
Guaranteed card payment fee reduced to £15 from £35 (maximum £90 per month, reduced from £105 per day)
Maintenance charge reduced to £20 from £28
Unarranged borrowing rate of interest reduced to 19.24% EAR

Helping Customers Avoid Fees
The Bank has already taken a number of steps to help customers avoid fees.

NatWest and RBS customers can avoid paying any unarranged borrowing charges by agreeing their borrowing requirements in advance, which is a simple and straightforward process. The Bank also offers customers a current account option that suits customers who frequently use an unarranged borrowing service. This account option carries unarranged borrowing fees pegged at £5 if customers pay a monthly fee of £10.

Customers are also able to keep a check on their account through branch, cash machine, phone and Internet, as well as through a free text alert messaging service which provides advance warning if they reach a certain limit determined by the customer.
Note to Editors
The OFT along with the Banks involved in the test case introduced a stay for all bank charge claims whilst clarity is reached through the courts.

[natweststaffmember]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Is the discussion topic here?(cos I have some views )

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Down in main banks forum Breaking news - RBS Group slashing OD charges - Legal Beagles

[Tools]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Is the discussion topic here?(cos I have some views )

Oh dear

[natweststaffmember]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Oh dear

Cheaky git

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Was only two weeks ago RBS were proclaimed the most expensive overdraft fees around.Think now they come in 4th in this one scenario.

RBS charges most for unauthorised overdrafts

RBS charges around £120 for a £30 three-day overdraft, compared to £15 at Halifax and nothing at HSBC



Royal Bank of Scotland charges almost £120 for a three-day £30 overdraft.



Royal Bank of Scotland (RBS) customers are being hit with the highest unauthorised overdraft charges on the high street, with fees of around £120 for a three-day overdraft, according to consumer body Which?.


The group, which is 70% owned by the taxpayer, charges fees nearly eight times higher than some of its rivals.



When a customer goes overdrawn and subsequently makes three £10 withdrawals over the next three days, the bank will charge £118. (my note: now will be £35)



By contrast, Halifax, which is part of the Lloyds Banking Group, charges £15 for a three-day £30 overdraft, while HSBC charges nothing – the bank only levies a charge on its account holders if they go more than £10 over their limit each day.

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

RBS cuts overdraft charges ahead of Supreme Court decision

September 7, 2009 RBS cuts overdraft charges ahead of Supreme Court decision



by Kay Murchie

RBS (RBS), which is 70% owned by the Government, has slashed its overdraft charges - ahead of the decision by the Supreme Court over whether or not the Office of Fair Trading (OFT) can regulate these charges.
The changes, which come into effect on October 1, will also affect NatWest customers and will see the cost of a bounced cheque or an unpaid direct debit reduced to £5 from £38, while the fee for paying an item on an overdrawn account will be slashed by half to £15.
Newly-appointed chief executive of the bank’s UK operations, 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,”
“As we look ahead there are many issues to consider, but we thought it was time to move this particular customer concern forward by cutting our charges.”
“As it relates to past charges we are awaiting the outcome of the industry-wide bank charges test case,” adds Mr Hartzer.
However, Peter Vicary-Smith, of Which? consumer group said the bank has bowed to consumer pressure, an accusation the bank denies.
“If RBS and NatWest truly want to get back in their customers’ good books, they should admit defeat in the bank charges test case and repay the millions of pounds Which? believes they’ve been unfairly taking from their current account holders for years,” said Mr Vicary-Smith.
Meanwhile, Nick Spooner of the campaign group, Legal Beagles, expects other banks to follow suit.
Last year, a High Court test case that has now been running for two years ruled that the OFT had the right to decide whether or not the charges were fair.
However, the seven High Street banks involved in the case challenged the ruling and in April were granted the right to appeal to the House of Lords.
It is estimated that banks could be forced to refund up to £1 billion in charges if they lose the fight with the OFT and face losing more than £2.5 billion a year in lost revenue.
Discuss this in the Finance Markets forums

[TUTTSI]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Well done Nick, on the press coverage.

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

In today's Metro a lovely advert 'letter ' from natwests new chief exec.

[WendyB]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Looks like Natwest will be keeping my money (or should I say my overdraft(s) lol) for the foreseeable future then lol.

I have asked this previously - do you reckon they might cave in on the OFT charges etc and just refund everyone all charges down to these levels then? It would get rid of the backlog wouldn't it, and a lot of people would be happy with it, I would have thought.

[Sapphire]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Don't hold your breath Wends, but I agree it would be an excellent idea.

[StoneLaughter]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

Would anyone here advocate changing their bank account from (say) Alliance and Leicester to these guys on the basis of this news? Or are there reasons to stay away from the RBS group?

[Amethyst]

Re: RBS cut unauthorised overdraft transaction fees to £15 (from £30)

I would, although I think the others will follow suit quite soon in various guises.