You are here: Home - Saving & Banking - News -

Billions in charges on UK current accounts held by banks

Written by:

The banking sector is expecting big changes following the publication of a report by price comparison company uSwitch that has revealed £2.12 billion in unfair charges waiting to be reclaimed.

Almost 19 million people with UK current accounts have been hit with bank charges totalling £4 billion and 52% of these account holders have not been able to reclaim their money.

The research also revealed that while 65% of these people have disputed the charges at some time, only 48% have successfully won a refund. Almost one in 10 have written to a regulatory body, such as the Financial Ombudsman, and threatened their bank with legal action.

Of the few account holders who have taken their bank to court, 14% claim that their UK accounts were shut down as a result.

On the subject of free banking, the banks’ arguments for ending it for UK current account holders focus on the fact that customers who go overdrawn currently pay for those who do not and that they face costs in running current accounts for everyone.

Nick White, director of financial services at uSwitch, said: “While the majority of banks are bending over backwards to refund charges to those consumers who have taken the initiative to fight back, this is not because they have gone soft in the last few months.

“They would simply rather settle now than have to appear in court and face a damaging test case with one of their UK current account holders, which would set a dangerous legal precedent.”  


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Tories’ proposed tax on flights meets heavy flak

The Conservative Party’s plan to tax flights in a bid to control environmental problems caused by aircraft emissions provoked an angry reaction...