Brits will find bank charges 'hard to swallow'

Tuesday, March 9 2010

Customers will find it difficult to accept monthly charges for the use of a current account.

Martin Bamford, chartered financial planner for Informed Choice, was referring to Virgin Money's plans to stop charging overdraft fees and instead charge a monthly payment for current accounts.

He said that it could take time for people to get used to this change and that such moves have not been welcomed in the past.

"People are already aware that banking is never 'free', although having to pay an explicit fee for a current account does represent a cultural shift that many customers will find difficult to swallow," Mr Bamford added.

The Sunday Times revealed plans from the chief executive of Virgin Money Jayne-Anne Gadhia to charge the low monthly fee to current account holders.

It would make the bank the first to ask for a compulsory upfront fee for any account, regardless of the amount of money paid in.

Mr Bamford claimed that a shakeup of the banking industry could restore confidence.