PPI Claim News - 20/8/2012
Future current accounts 'will not have hidden bank charges'
There should be no hidden bank charges in the future, a specialist has said.
Advanced Payment Solutions chief executive officer Richard Wagner said banks will eventually have to come up with transparent, alternative pricing models.
He pointed out that high street banks are being affected by regulations that relate to "stealth fees" and penalty charges.
"No hidden charges will ultimately rule the day," the specialist forecast.
Mr Wagner explained banks probably do not want to make their fees more transparent but are being forced to.
He said around five years ago, approximately 90 per cent all the consumer current accounts on the market were "free", while nowadays, at least half have "some sort of transparent monthly fee attached".
Typically, consumers want an "open transparent account", the expert remarked.
Mr Wagner is not the only person to criticise the myth of free banking, with Barclays Bank's new chairman Sir David Walker saying in an interview with the Sunday Telegraph that the misselling of interest rate swaps and payment protection insurance are "the consequence of not charging for bank accounts".
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.
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