Watchdog Consumer Focus has recently said that Brits may be put off opening current accounts if providers keep raising charges and restricting accessibility, industry experts report.
A recent decision by banking giant Barclays to raise the daily charge cap by a factor of three on missed direct debits, up to £24 from £8, is undoubtedly going to make substantial differences to the decisions of customers when it comes time to open a new current account, Consumer Focus said. The consumer watchdog conducted research that found such fees discourage Brits from opening new accounts, even if it is unlikely that they would incur such a charge – though some banking providers, such as Royal Bank of Scotland, charge more than twice what Barclays is charging with a maximum fee of £60.
Consumer Focus says that more than 1 million Brits do not have any sort of personal or business bank account, while even more choose not to use an account they do have due to crippling fears of being charged fees. As a result, these individuals are naturally disadvantaged in terms of being able to make direct debit payments and other related facilities.
With RBS stating recently that its basic account holders will be limited on the number of cash machines from which they are permitted to take out their cash, the watchdog has also raised worries in regards to accessibility. Other banks have followed in the footsteps of RBS, similarly limiting their basic account customers to a much smaller network of ATMs in an effort to control costs.