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| Monthly bank charges 'not wanted' | |
| (about 6 hours later) | |
| Bank customers do not want monthly account fees even if meant the end of penalty charges, a survey suggests. | |
| The High Court is due to decide in a test case whether the level of penalty charges made by banks is lawful. | The High Court is due to decide in a test case whether the level of penalty charges made by banks is lawful. |
| If it rules against them, they may try to recoup money with monthly fees or by charging for each transaction. | If it rules against them, they may try to recoup money with monthly fees or by charging for each transaction. |
| A YouGov survey of 2,116 people for website moneysupermarket.com suggested just 8% wanted a regular fee with 1% wanting a charge for each transaction. | A YouGov survey of 2,116 people for website moneysupermarket.com suggested just 8% wanted a regular fee with 1% wanting a charge for each transaction. |
| At the moment, people can be charged as much as £35 for going overdrawn without authorisation or for having a direct debit refused. | At the moment, people can be charged as much as £35 for going overdrawn without authorisation or for having a direct debit refused. |
| The Office of Fair Trading (OFT) is investigating the current penalty charges system. | The Office of Fair Trading (OFT) is investigating the current penalty charges system. |
| Pay-per-transaction system | Pay-per-transaction system |
| Some experts suggest that the money from these charges essentially subsidised the accounts of people who did not incur them. | |
| We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers Kevin Mountfordmoneysupermarket.com | We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers Kevin Mountfordmoneysupermarket.com |
| Kevin Mountford, head of current accounts at moneysupermarket.com, said free banking was possible "largely because of the number of people who are hit with fees and charges". | Kevin Mountford, head of current accounts at moneysupermarket.com, said free banking was possible "largely because of the number of people who are hit with fees and charges". |
| If this was outlawed, a pay-per-transaction system - as used in many other countries - could become a reality for the UK. | If this was outlawed, a pay-per-transaction system - as used in many other countries - could become a reality for the UK. |
| "We could well see the system prevalent in Western Europe, North America and Australia, where there are a certain number of free transactions and then you pay for any additional ones," he said. | "We could well see the system prevalent in Western Europe, North America and Australia, where there are a certain number of free transactions and then you pay for any additional ones," he said. |
| "We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers." | "We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers." |
| The introduction of such transaction charges could lead to a change in the spending habits of people used to making cash withdrawals or multiple card transactions, he added. | The introduction of such transaction charges could lead to a change in the spending habits of people used to making cash withdrawals or multiple card transactions, he added. |
| These people were likely to make efforts to reduce costs, he added. | These people were likely to make efforts to reduce costs, he added. |