There has been an interesting development in the bank charges campaign. We have had the result of the court case brought by the office of fair trading but that is being appelled by the banks.

In the meantime Barclays has annouced that they are introducing a new system of charging. They plan to have a bufferzone of £250 which if you go overdrawn you can make use of. There will be a charge of £22 which will pay for the use of this extra overdraft and no further charges will be made for any other transactions that remain within this limit for a period of up to 5 days. Beyond that period there will be additional charges of £8 per transaction which is beyond any agreed overdraft.

It is an interesting approach and certainly better value than a £35 charge for every single transaction. It does still seem expensive if you make the odd overlimit transaction but if you have several which would previously all have been charged this could be a much better deal.

It does seem to be a significant improvement over the previous policies and must be welcomed for that. It seems to be a useful step forward.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

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  2. Some Bank Charges Reduced
  3. OFT Can Take The Question Of Bank Charges To Court
  4. Judges Support Bank Charges Complaints
  5. OFT To Review Bank Charges Imposed On Customers

Filed under: Banking

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