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Responding to the news that First Direct is to charge customers for having a
current account, Liberal Democrat Shadow
Chancellor, Vince Cable MP commented: "This is an early sign that the banks are
going to abandon free banking and impose
charges for the use of a current account.
"This will create a further barrier to people on low incomes trying to use the
banking system".
The the UK telephone and internet banking arm of HSBC plans to charge its
customers a £10 monthly fee for running a
current account unless they pay in or keep a balance of at least £1,500 a month.
The move could potentially affect up to 195,000 customers.
The bank said the move was aimed at dormant or rarely used accounts, and that
the fee will be waived if customers open a
savings account or buy products such as home insurance or loans.
Chris Pilling, First Direct chief executive, commented: "I want to focus our
efforts on our most important customers,
those who use us as their main bank or who have a number of products with us.
"Many of our customers do not enjoy the full benefits as they use us for a
secondary account.
"Some customers are more important than others because those customers who have
the deepest relationship with us, benefit
from the offer we have got".
Cable added: "It is shocking that First Direct are targeting their charges at
anyone who earns less than £24,000.
"More seriously, it demonstrates the folly of pursuing the banks piecemeal for
excessive charging, rather than looking at
banking fees and profits as a whole.
"This was recommended five years ago by the Cruickshank Report, which the
Government has singularly failed to implement."
Source:
Getting Paid
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