Bank charges decision is opportunity for new banks

by Ed Bowsher on 25 November 2009  |  7 comments
Tweet

Today's Supreme Court verdict on overdraft charges is very disappointing. Now it's up to the newer banks to differentiate themselves by offering a fair charging structure for unauthorised overdrafts.

Today's verdict on overdraft charges is very disappointing. At a time when faith in the financial services industry is at rock bottom, this verdict will do nothing to reassure the public that their bank genuinely has their interests at heart. 

That said, 2010 isn't necessarily going to be a bad year for bank customers. That's because some of the newer players such as Tesco and Virgin will be aggressively pushing for market share, and we'll also see new banks spun out of Royal Bank of Scotland and Lloyds. These younger businesses could win market share by promising to levy reasonable charges for unauthorised overdrafts. 

I hope that the newer banks seize this opportunity. Customers should then vote with their feet and switch to a bank that doesn't impose extortionate and unfair charges.

Postscript: If you have already successfully reclaimed bank charges, don't worry, the British Bankers Association assures me the banks won't come along and ask for the money back.

> You can restart your bank charges claim

> Compare current accounts with lovemoney.com