Free banking ‘to go within two years’
Consumer and regulatory pressure regarding bank charges could see free banking will be phased out within two years, a financial company has warned.
Pay-as-you-go prices will be introduced for current accounts based on the purpose and frequency the holdings are accessed, according to Defaqto.
For example, the company claimed that those consumers who require a large amount of cheques to be processed would be charged more by banks, compared to those who use relatively hassle-free electronic transactions.
And the head of banking for the organisation, David Black, commented that it would be surprising if free banking was universally accepted in two years time.
"The first major provider to introduce charges for all customers is going to take a lot of flak but it is likely that the majority of the main providers will then follow the lead," he said.
Over the last year, consumer group Which? has been running an Anti Social Banking Order, gathering support in a petition against bank charges.
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