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| Millions of bank customers on raw deals, figures suggest | Millions of bank customers on raw deals, figures suggest |
| (35 minutes later) | |
| Millions of people who have basic bank accounts may be paying higher fees than necessary, government figures indicate. | Millions of people who have basic bank accounts may be paying higher fees than necessary, government figures indicate. |
| Basic bank accounts are designed for people who do not already have a bank account and are ineligible for a standard current account. | Basic bank accounts are designed for people who do not already have a bank account and are ineligible for a standard current account. |
| While eight million people have basic accounts, around half of them are still liable to pay fees for failed payments. | While eight million people have basic accounts, around half of them are still liable to pay fees for failed payments. |
| Completely fee-free basic accounts have been available since January 2016, following an industry agreement. | Completely fee-free basic accounts have been available since January 2016, following an industry agreement. |
| Vulnerable customers who have such accounts are not charged for failed payments, or for going overdrawn. | Vulnerable customers who have such accounts are not charged for failed payments, or for going overdrawn. |
| The Treasury figures show that 3.7 million people have accounts that do not conform to the agreement, struck between the government and the banking industry, in 2014. | The Treasury figures show that 3.7 million people have accounts that do not conform to the agreement, struck between the government and the banking industry, in 2014. |
| Of those, 3.6 million bank with Lloyds. | Of those, 3.6 million bank with Lloyds. |
| Only 4% of those who have basic bank accounts with Lloyds have access to the cheapest banking terms, the figures show. | Only 4% of those who have basic bank accounts with Lloyds have access to the cheapest banking terms, the figures show. |
| Lloyds said that it wrote to all its basic account customers, giving them the option to move to one of the new accounts. However not all were eligible, it said. | Lloyds said that it wrote to all its basic account customers, giving them the option to move to one of the new accounts. However not all were eligible, it said. |
| 'Financial distress' | 'Financial distress' |
| "These figures are shocking, but sadly not surprising," said Hannah Maundrell, editor in chief of Money.co.uk. | "These figures are shocking, but sadly not surprising," said Hannah Maundrell, editor in chief of Money.co.uk. |
| "Swift intervention is clearly necessary if banks can't be trusted to treat their most financially vulnerable customers fairly." | "Swift intervention is clearly necessary if banks can't be trusted to treat their most financially vulnerable customers fairly." |
| Royal Bank of Scotland (RBS) is the only other bank where some basic account customers have to pay fees. | Royal Bank of Scotland (RBS) is the only other bank where some basic account customers have to pay fees. |
| At the other seven big High Street banks, all basic account holders receive the best deal on offer. | At the other seven big High Street banks, all basic account holders receive the best deal on offer. |
| The agreement for fee-free basic banking was introduced after studies showed that up to 1.5 million people in the UK did not have bank accounts. | |
| "Fee-free basic banking facilities should be made available to everyone not eligible for a standard current account," said Ms Maundrell. | "Fee-free basic banking facilities should be made available to everyone not eligible for a standard current account," said Ms Maundrell. |
| "It's not right that banks are profiting from those in financial distress, and the regulator and government need to put a stop to this as a priority." | "It's not right that banks are profiting from those in financial distress, and the regulator and government need to put a stop to this as a priority." |
| 'Responsibility' | 'Responsibility' |
| However, the Treasury said that nearly half a million basic accounts had been opened in the first six months of 2016. | However, the Treasury said that nearly half a million basic accounts had been opened in the first six months of 2016. |
| It said that would eat in to the number of people who previously had no bank account at all. | It said that would eat in to the number of people who previously had no bank account at all. |
| The economic secretary to the Treasury, Simon Kirby, said: "There is still more to be done, and I am determined to work with the industry to boost financial inclusion and make sure people have the resources they need to manage their finances." | The economic secretary to the Treasury, Simon Kirby, said: "There is still more to be done, and I am determined to work with the industry to boost financial inclusion and make sure people have the resources they need to manage their finances." |
| A third of all new basic accounts opened between January and June 2016 were at Lloyds. | A third of all new basic accounts opened between January and June 2016 were at Lloyds. |
| "We believe that all banks have a responsibility to provide basic bank account facilities to customers who would be otherwise excluded, and today's announcement highlights that the sector has a responsibility to do much more," said a spokesperson for Lloyds. | "We believe that all banks have a responsibility to provide basic bank account facilities to customers who would be otherwise excluded, and today's announcement highlights that the sector has a responsibility to do much more," said a spokesperson for Lloyds. |