Treasury unveils new fee-free current account
16 Dec 2014
HM Treasury has unveiled the template for a new fee-free current account, with the aim of providing a basic bank account that is accessible to anyone who does not currently have a bank account, or who cannot use their existing account due to financial difficulties.
Under the new scheme, one-off fees will no longer be charged for failed direct debits or standing orders. Such charges have previously pushed a significant number of account holders into unauthorised overdrafts.
Commenting on the measure, Andrea Leadsom, Economic Secretary to the Treasury, said that it would provide basic bank account holders with greater certainty and clarity.
‘It will end people being effectively locked out of their basic bank accounts due to high fees and charges when their payments failed’.
‘Ending this unfair situation is a real step forward for the banking industry’s most vulnerable customers and improving access to banking is a key part of our long-term economic plan.’