Breaking news - RBS Group slashing OD charges

[Shazzaw]

No doubt will soon appear on BBC, etc; but heard on radio RBS Group slashing their OD charge from £38 to £5!!!!!!!!!!!!!!! More to follow....

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

£5 a day ?

[Shazzaw]

Re: Breaking news - RBS Group slashing OD charges

£5 per charge as I heard it on radio 5 live just now

[Mochamoo]

Re: Breaking news - RBS Group slashing OD charges

RBS-NatWest slash overdraft fees


The new Supreme Court will rule on overdraft fees later this autumn

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.

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

The new Supreme Court will rule on overdraft fees later this autumn

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.

[shas]

Re: Breaking news - RBS Group slashing OD charges

Won't this set a precedent for other banks to follow in order to keep their market share & their customers?

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

Bounced Cheques down to £5

Paid / Unpaid DD's / So's /Guaranteed card transactions - £15

Monthly OD fee ? is that staying at £28 ?

Brill news if its as it appears on surface. Shame the headline figure will be the £5 for bounced cheques seeing as cheques are rather obsolete anyway.

[Mochamoo]

Re: Breaking news - RBS Group slashing OD charges

Bet they will try and do what the CC companies do and only pay the difference back in the charges.

[TUTTSI]

Re: Breaking news - RBS Group slashing OD charges

Do you think this might catch on accross all the banks?
Is this the level of charges which all the banks will agree eventually with the OFT?

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

£15 ? Hope not. I hope the cheque bouncing £5 - which takes manual intervention - is the maximum they can go to.

DD's is completely computerised so why does that cost £10 more to say No. ?????

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

Rightio Tools is on phone to press office @ RBS see how much info we get. Theres a few anomolies and nothing on the RBS site at all

With a decision on whether the Office of Fair Trading can regulate charges levied by banks on overdrafts and direct debits due to be delivered anytime, the move could be seen as the bank’s attempt to pre-empt any judgement and from 1st October, Royal Bank of Scotland (RBS) and NatWest customers will be charged only £5 for having a cheque bounced or direct debit returned unpaid; this is down from the current charge of £38. Meanwhile, the charge for paying an item on an overdrawn account falls from its current £30 to £15.

So is the £5 for bouncing anything (DD's or cheques) and the £15 for paying whilst in overdraft ? Who makes the decision to pay or bounce ?

waiting for call back from ronan @ rbs press office.

[Shazzaw]

Re: Breaking news - RBS Group slashing OD charges

Also heard earlier - but not mentioned anywhere yet - that the TOTAL monthly charges per customer per month would be a max of £50

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

Thanks Shazzaw :kiss: you star - will ask him that too.

[enaid]

Re: Breaking news - RBS Group slashing OD charges

RBS-NatWest slash overdraft fees


The new Supreme Court will rule on overdraft fees later this autumn

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.
'Welcome news'
At stake is annual income for the banks of more than £2bn a year.
Hopefully this is a recognition of how unfair their pricing system has been


Marc Gander, CAG

Since 2005 the banking industry has faced increased customer discontent. Hundreds of thousands of customers have tried to reclaim the overdraft fees they have been charged, on the grounds that they were unfair and therefore illegal.
In 2007 the UK's banks refunded about £784m to nearly 378,000 customers.
But since the banks and the OFT embarked on their legal test case in July 2007 a further 1.2 million people have now had their claims frozen, awaiting the outcome of the legal battle.
"This is obviously very welcome news and about time," said Marc Gander of the Consumer Action Group.
"Hopefully this is a recognition of how unfair their pricing system has been."
However he said he would want to look at the new structure of the bank's charges to see if the lost income was being made up elsewhere.
Resolution?
After losing before both the High Court and Appeal Court, the banking industry took the matter to the House of Lords, whose decision will now be handed down by the new Supreme Court.
In July this year, the government in its White Paper on reforming the financial markets called on the industry to find a quicker way to resolve the issue.
"This announcement [by RBS-Natwest] is highly significant," said Nick Spooner of the campaign group Legal Beagles.
"I would expect most of the other banks to follow suit quite quickly," he added.
The RBS-Natwest group declined to say how much income it would forego each year from its reduced fees.
A spokesman said its change of policy had been prompted by the arrival of the new chief executive Mr Hartzer.
But the spokesman said there had been no pressure from the government to change the bank's overdraft fees.
Between them, the RBS and NatWest have 12.5 million current account holders, of whom only a minority go overdrawn without permission each year.
The OFT declined to comment on bank's decision. The British Bankers' Association (BBA) said it was purely a commercial decision for the RBS-NatWest group.

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

Whoever talks to BBC next - get them to correct this bit it is a tad ambiguous.

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.

nice to see Beagles and CAG agree on something