- Monday, 23 November 2009A fee-free current account launched by Santander could help people to avoid the need for
IVA advice.
The Standard Zero Current Account could have a direct impact on a number of people's personal finance status as a result of removing unforeseen charges on unauthorised borrowing.
The number of people spending themselves into financially unviable positions and subsequently adopting
individual voluntary agreements (IVAs) could therefore reduce.
The timing of the account's creation pre-empts a decision from the Supreme Court this week on the lawfulness of past charges on unauthorised loans.
Ed Bowsher, head of consumer finance at lovemoney.com, said that banks may well find alternative ways of charging consumers if the Supreme Court deems unauthorised borrowing fees unlawful.
He commented: "Even after whatever ruling we have, I'm sure the banks will, in the end, be able to impose some form of charge for unauthorised overdrafts – even if it's just to reflect the costs of administering an unauthorised overdraft."
Santander has suggested that its decision to offer a fee-free account was made with the aim of "radically changing" the UK banking sector.
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