by Administrator
28. October 2010 12:04
Natwest and the Royal Bank of Scotland (RBS) plan to simplify their bank charges on unarranged borrowing, which may aid those living with a
debt management plan.
From February 1st next year, the firms will stop charging interest on unauthorised overdrafts, which means consumers are less likely to rack up more debt.
They will also be reducing their four bank charges down to two but will still charge if a direct debit cannot be paid due to a lack of funds.
Consumers will also be charged £6 for each day that they are more than £6 over their overdraft limit.
However, it may be easier for consumers to stay on top of their finances and avoid the need for a
debt management plan through the new Act Now service.
The firms will send a text or email alert to its customers if they are at risk of accruing charges and will remind them to put enough money into their account to cover any payments due to be debited.
Susie Wands, head of overdrafts, said: "This is good news for customers. Through our Customer Charter we have committed to listening to our customers and making banking easier."
Consumer Focus recently found that 29 per cent of people are not happy with their current accounts.
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