Breaking news - RBS Group slashing OD charges

[WendyB]

Re: Breaking news - RBS Group slashing OD charges

Has anyone asked them if they are considering reducing the charge retrospectively? Would reduce the claims on hold by a fair few if they did, I bet a lot of people would go for a refund down to £5 on all their previous charges.

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

love the use of the words "UNarranged Borrowing" cos that is utter pigswill.

[TUTTSI]

Re: Breaking news - RBS Group slashing OD charges

What is the meaning of 'any charging period' is that a month a day or what?

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

Charging period is statement month ie statement on 1st Jan so end of month is end of charging period and charges go out 21 days afterwards.

To go back to the topic in hand, RBS Group have pulled off a massive coup.
Let's look at the whole thing. Last August the OFT tells RBS Group that it believes that the terms are unfair, October is government money(not necessarily an issue), OFT stated in the HoL case that the banks winning the case may still not be the end of the saga and then Which? say that the charges are the highest overall.

The two things that stick out of this is that from the PR perspective this is a massive coup because the charges have dropped.
Furthermore this is a poker's hand. They didn't need to consult the FSA because the terms were not being changed only the cost of the terms. Furthermore, if the Banks' win then RBS with their lower charges which Mocha has demonstrated would be lower for her may escape any OFT action. Furthermore, the number of cases of financial hardship going through RBS Group may well LOWER as a result of reduced charges and therefore mean less cost incurred with dealing with the FOS.

On the downside, and yes there is the one, if they lose the case then they could be in line to refund less if it drags on since their charges are now much lower. In essence, it is a brilliant strategy which has elements of everything within it. Good publicity may help the share price as well and therefore is good for the HMT who own 70% shares and would be nice to sell some to recoup money for the public purse and reduce the massive debt.

The downside is not as bad as the upside of this all.

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

After a nudge from Nats have emailed the press office guy again and asked if this will be applying to business account. (I don't think it will be ref RO@Nats) but doesn't hurt to double check.

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

Amazing what a park and ride bus and aching feet can lead to, endless questions.

[askl]

Re: Breaking news - RBS Group slashing OD charges

According to a number of sources including the Times today.
"John Wright, national chairman of the Federation of Small Businesses, said that it welcomed RBS’s decision to reduce overdraft fees: “This is a positive step towards helping small firms access affordable finance.”

http://business.timesonline.co.uk/to...cle6825323.ece

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

NatWest - business banking - current account
Strange that it is not mentioned on their business account products.
------------------------------- merged -------------------------------
I just called Actionline and was told that the "new" charges DO NOT apply to Business account holders, it's only personal Current account holders.

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

Askl, I now have confirmation from someone who works for RBS Group that it does NOT apply to business accounts.

[Amethyst]

Re: Breaking news - RBS Group slashing OD charges

I wonder why the FSB have said that then ? Will see what Ronan comes back with tmw but Wilo is good enough for me. They won't be able to leave business accounts as they are now so I expect something is in the pipeline.

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

Ok, taken from the NatWest Website:
Personal Accounts:

Personal accounts
"An Unpaid Item Fee will be payable if:

• you informally request an overdraft by issuing instructions for a withdrawal or other payment; and
• the payment cannot be met from the funds in your account or any unused arranged overdraft facility; and
• we decide in our discretion not to make the payment."

So as we know that business accounts do not apply then surely it must be because there is a different process involved, would you not think?

Customer's returned items
Unpaid Item Fee

"An Unpaid Item Fee of £35 (subject to a maximum of £140 per day) will be payable if:

• you informally request an overdraft by issuing instructions for a withdrawal or other payment; and
• the payment cannot be met from the funds in your account or any unused arranged overdraft; and
• we decide in our discretion not to make the payment. The fees are charged on the day we decide not to make the payment."

The above is for business accounts.

Let's not be cynical here there has to be something in this for Businesses.
Personal account holders can be charged £50.00 maximum per charging month or 10 items returned unpaid.
For Businesses: £35.00 per item(maximum is 4 items PER DAY) and taking the above as a guide it's £350.00 a month or £300.00 a month MORE EXPENSIVE being a business customer than a personal customer. So that is one part time worker not being employed or weekend member of staff.
Yet the payment instructions as laid out above are identical.

[natweststaffmember]

Re: Breaking news - RBS Group slashing OD charges

According to a number of sources including the Times today.
"John Wright, national chairman of the Federation of Small Businesses, said that it welcomed RBS’s decision to reduce overdraft fees: “This is a positive step towards helping small firms access affordable finance.”

http://business.timesonline.co.uk/to...cle6825323.ece

Askl, I did doggedly ask the FSB for a statement about that since I thought it might have been sloppy journalism.
"Many of the smallest businesses use their own personal accounts to run their businesses, so they will still benefit from the RBS announcement. We continue to be in discussion with all the banks to improve the situation for small businesses using small business accounts."


The above came from their press office and I would like to thank them on the forum as well for responding to me.