Banks launch fee-free accounts; No charge for missing direct debit or standing order
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Banks launch fee-free accounts; No charge for missing direct debit or standing order

52
Found 27th Dec 2015
Nine UK banks launch fee-free accounts, the new accounts will be available from 1 January to people who fail to qualify for a full current account.

Barclays
Santander
NatWest
Ulster Bank
Royal Bank of Scotland (Scotland)
RBS England and Wales
HSBC
Nationwide
Co-operative Bank
Lloyds/ Halifax/ Bank of Scotland
TSB
Yorkshire and Clydesdale Banks

* Nine million basic account holders will now not be charged for missing a direct debit payment, or a standing order. *

52 Comments

Original Poster

http://i63.tinypic.com/95tnr9.png

Can current account holders 'downgrade' to a fee free account?

I might be partial to a bit of fee-free pie

OMG!
I hope the wife doesn't find out!
She failed to qualify for a bank account all her married life.............................by me!
She's useless with money and just wastes it!
I give her £50 per week to just buy food and pay bills and she's always asking for more!
How can I give her more when beer prices keep rising and my horses keep getting beat?
Bad times!
Edited by: "y-oh-y" 27th Dec 2015

This I think its very good. I have a basic account with Barclay's. Had to leave my full time job around 6 months ago to become my step sons full time carer and learning to budget again on very little income I found very difficult for the first couple of months. The constant cycle of charges applied to accounts for a missed DD taking you overdrawn meaning you then have less cash to pay for that DD the following month resulting sometimes in a further missed payment and charge can be very frustrating. Although credit interest is not good and you don't enjoy the perks of a full account these accounts are perfect for people that have been unable to budget previously. Not sure why people are voting cold but this is hot. I know Barclay's wrote me a letter about this a couple of months back saying that this has started. Well done to the banks for making those people who may struggle with money have a better chance of budgeting correctly.
Edited by: "j88mst" 27th Dec 2015

Or just get a decent account like the Halifax reward account that doesn't charge for bounced direct debits, has a £50 buffer, has a contactless card so the 'buffer' can be used in supermarkets if you're in a bit of a bind, and it pays you £5 a month.

eset12345

Or just get a decent account like the Halifax reward account that doesn't … Or just get a decent account like the Halifax reward account that doesn't charge for bounced direct debits, has a £50 buffer, has a contactless card so the 'buffer' can be used in supermarkets if you're in a bit of a bind, and it pays you £5 a month.



​well not everyone will get accepted for an account like that will they?! making these good alternates!

I'll wait until it's cheaper

Thanks for the info

This is fantastic news and will undoubtedly come as a fantastic help to many people who were under the regular cycle of unpaid charges leaving them without funds.

Speaking from experience in working for six years in a banking debt management unit, I feel I must point out that there's still a couple of events that keep catching people out.

Using your card may take 2-3 days for the money to actually debit the account. If you use your card under the "floor limit" of a retailer, the bank will never know that money is due out until the retailer asks for it. For example, many petrol pumps that allow you to pay at the pump only request £1 initially, but it gives them authorisation to take whatever you finally end up spending at the pump.

Also the bank cannot stop you from using your card while there are direct debits or standing orders due out around the same time. If you have £50 in your account and spend £40 on your weekly shopping on say, Monday, and a £50 direct debit is due out on the Tuesday, the result can likely be that the direct debit is paid on the Tuesday and the card payment will debit the account on the Wednesday. You will be forced overdrawn.

These two examples are important because a card payment simply cannot be stopped or reversed. You might not get charged for it, but the account doesn't have an overdraft so you will be unable to use your account until it is back in credit - and even then, you'll be "down" by how much overdrawn you were as the money will be taken back straight away.

The removal of charges is great, but there are still a number of people who lack basic money management skills, and a smaller percentage who simply have no regard for their financial wellbeing and actually utilise the methods above, and the bank holidays, to screw themselves and the banks over.

j88mst

This I think its very good. I have a basic account with Barclay's. Had to … This I think its very good. I have a basic account with Barclay's. Had to leave my full time job around 6 months ago to become my step sons full time carer and learning to budget again on very little income I found very difficult for the first couple of months. The constant cycle of charges applied to accounts for a missed DD taking you overdrawn meaning you then have less cash to pay for that DD the following month resulting sometimes in a further missed payment and charge can be very frustrating. Although credit interest is not good and you don't enjoy the perks of a full account these accounts are perfect for people that have been unable to budget previously. Not sure why people are voting cold but this is hot. I know Barclay's wrote me a letter about this a couple of months back saying that this has started. Well done to the banks for making those people who may struggle with money have a better chance of budgeting correctly.


don't thank the banks, they had no bloody choice if they could keep charging more to bounce a dd than it would have cost to pay it in the first place they would. Still I hope it helps you get out of the horrible cycle you are in, but please don't forget they put you in it to start with. Good luck with balancing act

dkl_uk

This is fantastic news and will undoubtedly come as a fantastic help to … This is fantastic news and will undoubtedly come as a fantastic help to many people who were under the regular cycle of unpaid charges leaving them without funds.Speaking from experience in working for six years in a banking debt management unit, I feel I must point out that there's still a couple of events that keep catching people out.Using your card may take 2-3 days for the money to actually debit the account. If you use your card under the "floor limit" of a retailer, the bank will never know that money is due out until the retailer asks for it. For example, many petrol pumps that allow you to pay at the pump only request £1 initially, but it gives them authorisation to take whatever you finally end up spending at the pump.Also the bank cannot stop you from using your card while there are direct debits or standing orders due out around the same time. If you have £50 in your account and spend £40 on your weekly shopping on say, Monday, and a £50 direct debit is due out on the Tuesday, the result can likely be that the direct debit is paid on the Tuesday and the card payment will debit the account on the Wednesday. You will be forced overdrawn.These two examples are important because a card payment simply cannot be stopped or reversed. You might not get charged for it, but the account doesn't have an overdraft so you will be unable to use your account until it is back in credit - and even then, you'll be "down" by how much overdrawn you were as the money will be taken back straight away.The removal of charges is great, but there are still a number of people who lack basic money management skills, and a smaller percentage who simply have no regard for their financial wellbeing and actually utilise the methods above, and the bank holidays, to screw themselves and the banks over.


and given the choice between screwing a bank over for some shopping or going to a pawn shop to get charged 1000s in apr on buy back schemes or exorbitant 28 day loans I know exactly which one I would recommended people do! just incase its not clear the banks get screwed every time! they did enough of it to everybody else so if I can get some zero % apr by juggling payments I will

thomasleep

don't thank the banks, they had no bloody choice if they could keep … don't thank the banks, they had no bloody choice if they could keep charging more to bounce a dd than it would have cost to pay it in the first place they would. Still I hope it helps you get out of the horrible cycle you are in, but please don't forget they put you in it to start with. Good luck with balancing act



Well said. Personally, I think this should have been done a long time ago.

Edited by: "Dealmessiah" 27th Dec 2015

Dealmessiah

Well said. Personally, I think this should have been done a long time ago.



It was.

Many banks have had a free bank account with no overdraft facility for years. The difference now is that they've chosen not to charge people for returned DDs and SOs. As far as I can see, the Co-op hasn't charged a penny for that since at least July 5th this year.

thomasleep

and given the choice between screwing a bank over for some shopping or … and given the choice between screwing a bank over for some shopping or going to a pawn shop to get charged 1000s in apr on buy back schemes or exorbitant 28 day loans I know exactly which one I would recommended people do! just incase its not clear the banks get screwed every time! they did enough of it to everybody else so if I can get some zero % apr by juggling payments I will



Well done. Your endorsement of financial mismanagement really helps to solidify the years of work I put into making sure regular people could utilise their money properly.

All banks have always offered debt counselling services. The effectiveness of them comes down to the customer's willingness to first of all contact them, and second of all listen to the advice they are given.

For those people in the Jeremy Kyle generation who want to ruin their own lives, now you can do so without a slap on the wrist from the bank. The same can't be said however for the companies you don't pay when you've got no money left in your overdraft-less bank account.

Good news for some people

Seems a bad idea to me , I understand how this will help some people, but I think a lot of people will abuse the system , open a basic account, use it for ebay & paypal fraud,mobile phone contacts,sky,internet and other services and just not bother paying the direct debit leaving the banks and companies out of pocket

bigjeremy

Seems a bad idea to me , I understand how this will help some people, but … Seems a bad idea to me , I understand how this will help some people, but I think a lot of people will abuse the system , open a basic account, use it for ebay & paypal fraud,mobile phone contacts,sky,internet and other services and just not bother paying the direct debit leaving the banks and companies out of pocket


I don't think it will work like that . Banks won't charge to return a direct debit if there are insufficient funds but neither are they likely to pay it . It won't be a licence to print money and if credit cards utility companies and the like don't get the funds they are quite within their rights to levy a charge

also can be seen as trying thier hardest to grab as much lost money as poss
making sure everyone is on grid with every monetary transaction
keeping all your ID`s on file, your data is worth money
or maybe banks are just really kind now

bigjeremy

Seems a bad idea to me , I understand how this will help some people, but … Seems a bad idea to me , I understand how this will help some people, but I think a lot of people will abuse the system , open a basic account, use it for ebay & paypal fraud,mobile phone contacts,sky,internet and other services and just not bother paying the direct debit leaving the banks and companies out of pocket



Logically, how did you come to that conclusion?

effingandjeffing

also can be seen as trying thier hardest to grab as much lost money as … also can be seen as trying thier hardest to grab as much lost money as possmaking sure everyone is on grid with every monetary transactionkeeping all your ID`s on file, your data is worth moneyor maybe banks are just really kind now



It was campaigners who fought for this for, nothing to do with banks trying to keep people on grid, or being kind. Banks couldn't care less, though it will cost them money. Opening and managing accounts does have a cost. They wouldn't do it if the government hadn't pushed them into it.

It's about wealthy inequality and giving more people a chance. Tories are known as the nasty party, but they have been good in some ways and this is one of them.

Vanderlust

It was campaigners who fought for this for, nothing to do with banks … It was campaigners who fought for this for, nothing to do with banks trying to keep people on grid, or being kind. Banks couldn't care less, though it will cost them money. Opening and managing accounts does have a cost. They wouldn't do it if the government hadn't pushed them into it.It's about wealthy inequality and giving more people a chance. Tories are known as the nasty party, but they have been good in some ways and this is one of them.


rubbish

effingandjeffing

rubbish



Sorry what?

What part is rubbish? The wealth inequality campaigners? The banks not wanting to provide fee free accounts? The government negotiating this deal? That account opening and management costs banks?

What part is rubbish and provide evidence for your claim.

Vanderlust

Sorry what?What part is rubbish? The wealth inequality campaigners? The … Sorry what?What part is rubbish? The wealth inequality campaigners? The banks not wanting to provide fee free accounts? The government negotiating this deal? That account opening and management costs banks?What part is rubbish and provide evidence for your claim.


disprove my claims

Don't reply to it if it can't muster up more than three words.

I get the impression that the fact these words are in any understandable order at all are merely a coincidence and not due to actual knowledge of the English language.

nationwide put a ccj on my home even though i was ill and was paying them something . banks always punish the low paid

arlenehuggins

nationwide put a ccj on my home even though i was ill and was paying them … nationwide put a ccj on my home even though i was ill and was paying them something . banks always punish the low paid



A CCJ was put on your home because you didn't pay what you agreed to pay. Paying them less than the agreed amount doesn't mean you won't get a CCJ nor does it keep you out of Bankruptcy. I will not even attempt to question the original loan amount, purpose or changes in your lifestyle, but the end word here is simply you weren't paying what you agreed to. That doesn't mean I don't think it's a crappy move on their behalf, but a CCJ has to go through the courts as well, and a judge has to agree with it.


top trolling
dkl_uk

Don't reply to it if it can't muster up more than three words.I get the … Don't reply to it if it can't muster up more than three words.I get the impression that the fact these words are in any understandable order at all are merely a coincidence and not due to actual knowledge of the English language.

arlenehuggins

nationwide put a ccj on my home even though i was ill and was paying … nationwide put a ccj on my home even though i was ill and was paying them something . banks always punish the low paid


another classic

you cannot go and request these accounts, they will be offered to people with very poor credit that fail to score for other accounts. also banks can and will move customers off these basic accounts when they score higher. these accounts will be awesome for many who lack budgeting skills.

and who pays to cover the banks admin charges for this? As I bet they wont want their profits / margins to drop.....

Of course it will be the savers

Only last week came letters from Santander and Natwest about cutting savings rates AGAIN, blaming "market conditions" which is absolute rubbish as the boe rates aint changed for years, so it must be to cover the costs of other peoples bouncing DD
Edited by: "jase.2" 28th Dec 2015

dkl_uk

Well done. Your endorsement of financial mismanagement really helps to … Well done. Your endorsement of financial mismanagement really helps to solidify the years of work I put into making sure regular people could utilise their money properly.All banks have always offered debt counselling services. The effectiveness of them comes down to the customer's willingness to first of all contact them, and second of all listen to the advice they are given.For those people in the Jeremy Kyle generation who want to ruin their own lives, now you can do so without a slap on the wrist from the bank. The same can't be said however for the companies you don't pay when you've got no money left in your overdraft-less bank account.


who is Jeremy Kyle? just curious did he run one of the many banks who mismanaged money to the point that the entire worlds economy hit the skids and tax payers ie account holders had to pay and still are paying to bail them out of the mess they put us all in!

thomasleep

who is Jeremy Kyle? just curious did he run one of the many banks who … who is Jeremy Kyle? just curious did he run one of the many banks who mismanaged money to the point that the entire worlds economy hit the skids and tax payers ie account holders had to pay and still are paying to bail them out of the mess they put us all in!




winner of the best response 2016 no one will beat this next year

also love the savers moneing, savers are the lucky ones, thing of those who would love to be in your position

dkl_uk

This is fantastic news and will undoubtedly come as a fantastic help to … This is fantastic news and will undoubtedly come as a fantastic help to many people who were under the regular cycle of unpaid charges leaving them without funds.Speaking from experience in working for six years in a banking debt management unit, I feel I must point out that there's still a couple of events that keep catching people out.Using your card may take 2-3 days for the money to actually debit the account. If you use your card under the "floor limit" of a retailer, the bank will never know that money is due out until the retailer asks for it. For example, many petrol pumps that allow you to pay at the pump only request £1 initially, but it gives them authorisation to take whatever you finally end up spending at the pump.Also the bank cannot stop you from using your card while there are direct debits or standing orders due out around the same time. If you have £50 in your account and spend £40 on your weekly shopping on say, Monday, and a £50 direct debit is due out on the Tuesday, the result can likely be that the direct debit is paid on the Tuesday and the card payment will debit the account on the Wednesday. You will be forced overdrawn.These two examples are important because a card payment simply cannot be stopped or reversed. You might not get charged for it, but the account doesn't have an overdraft so you will be unable to use your account until it is back in credit - and even then, you'll be "down" by how much overdrawn you were as the money will be taken back straight away.The removal of charges is great, but there are still a number of people who lack basic money management skills, and a smaller percentage who simply have no regard for their financial wellbeing and actually utilise the methods above, and the bank holidays, to screw themselves and the banks over.




Bang on and very well explained.

Im on a basic bank account with Santander, never needed an overdraft but there has been the odd scare between payments where I've been overdrawn for a day and been in a panic about it... im wondering if my bank counts as one of these now, or do I have to re-apply? I assume my accounts basic.. it's free with no fluffy bits.. ?

EuroPear

Im on a basic bank account with Santander, never needed an overdraft but … Im on a basic bank account with Santander, never needed an overdraft but there has been the odd scare between payments where I've been overdrawn for a day and been in a panic about it... im wondering if my bank counts as one of these now, or do I have to re-apply? I assume my accounts basic.. it's free with no fluffy bits.. ?



You need to ask Santander.

Do you have a Visa Electron card? There's a difference between having a "current account" with no overdraft, and a "basic account" which can never have an official overdraft.

Remember that not all current accounts charge. I have three and two of them are absolutely free. My third has a bolt-on with the fancy insurance and breakdown stuff and I'm more than happy to pay the £15 per month for it.

dkl_uk

You need to ask Santander.Do you have a Visa Electron card? There's a … You need to ask Santander.Do you have a Visa Electron card? There's a difference between having a "current account" with no overdraft, and a "basic account" which can never have an official overdraft.Remember that not all current accounts charge. I have three and two of them are absolutely free. My third has a bolt-on with the fancy insurance and breakdown stuff and I'm more than happy to pay the £15 per month for it.


Thanks will ask.. & just a visa debit card

smhhukd

you cannot go and request these accounts, they will be offered to people … you cannot go and request these accounts, they will be offered to people with very poor credit that fail to score for other accounts. also banks can and will move customers off these basic accounts when they score higher. these accounts will be awesome for many who lack budgeting skills.



As already mentioned by dlk_uk, in the case of the Co-op at least they have simply stopped charging people for unpaid DDs and SOs for months now. It's not just on their basic (Cashminder) account, but on all accounts. You are only charged if you go into an un-arranged overdraft on a Current account. So, yes, you can request any of these accounts, including the basic one. Also, they cannot and will not force you out of the basic account once you credit score improves, they can simply suggest you take out a standard current account if you have a chance of passing the application, credit check etc.

miles136

winner of the best response 2016 no one will beat this next yearalso love … winner of the best response 2016 no one will beat this next yearalso love the savers moneing, savers are the lucky ones, thing of those who would love to be in your position



so I should feel sorry for you because Ive managed to save money and cant say a word because i will now not make as much interest because I have to pay for your bounced DD's? sounds perfect

arlenehuggins

nationwide put a ccj on my home even though i was ill and was paying them … nationwide put a ccj on my home even though i was ill and was paying them something . banks always punish the low paid



I believe the court put that on your house. Nationwide will have made the request but cannot do it themselves. Fully deserved anyway. Don't tie yourself into something you cant pay, its simple.

10111010101011

so I should feel sorry for you because Ive managed to save money and cant … so I should feel sorry for you because Ive managed to save money and cant say a word because i will now not make as much interest because I have to pay for your bounced DD's? sounds perfect



I have no bounced DDs no over draft and moderate savings, I just believe that the haves should be making money from the have nots

miles136

I have no bounced DDs no over draft and moderate savings, I just believe … I have no bounced DDs no over draft and moderate savings, I just believe that the haves should be making money from the have nots



Fair enough then, apologies! Just not one to give any sympathy for people that want everything handed to them and get whatever they want for free when others have to pay for the liberty. there is literally no situation in this country that should have someone struggling this much. a couple struggling to pay rent, bills etc and bouncing DD's? buy a £20 tent and some sleeping bags and find a field for a month or two.
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