The survey showed that only 1% of participants would choose to pay a fee for every transaction made, while 8% would want upfront monthly or annual fees. According to the price comparison website, the introduction of ‘pay-as-you-go’ transactions, which are favored in many countries, could see Brits forking out an additional GBP300 a year.
The High Court is due to make a ruling on whether bank penalty charges are justified or not, the BBC has reported. However, if banks lose the case, it is expected that banks will attempt to remedy the losses by imposing monthly fee or pay-as-you-go transaction charges.
Kevin Mountford, head of current accounts at Moneysupermarket.com, said: We have already seen some providers abandon the concept of free banking by steadily introducing a bevy of charges on their less profitable customers. HSBC and First Direct both introduced a GBP10 monthly fee on certain accounts, and HSBC’s non-Premier account holders at its Canford Cliffs branch in Dorset are paying a fee for counter services.
The introduction of transaction charges would drastically affect consumer behaviour as it has done in other countries. Those used to making multiple card transactions or cash withdrawals are likely to alter their spending habits to reduce costs.
At the moment, free banking is possible largely because of the number of people who are hit with fees and charges. The OFT’s clampdown on this, together with politician Andrew Tyrie’s call for more transparency in charging, could well be moving us closer to a pay-per-transaction system – but one that Britons will resist.
