NatWest and RBS Simplify Unarranged Borrowing Fees
November 7th, 2011
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NatWest and RBS have announced that they are radically simplifying charges for customers who go overdrawn without agreement or exceed an agreed overdraft limit. The changes, which will be effective from 1st February 2011, will see four separate charges reduced to two.
The Banks are also launching the new ‘Act Now’ Alerts text and email service. This service prompts customers, at risk of incurring a fee, to pay in funds to cover any payments due to be debited from their account.
Details of the changes are:
- The ‘Maintenance Charge’, ‘Paid Referral Fee’ and ‘Guaranteed Card Payment Fee’ will be replaced with a single daily fee called the ‘Unarranged Overdraft Fee’. The fee will be £6 for each day that the account is in excess by more than £6.
- The name of the ‘Unpaid Item’ Fee will be changed to ‘Returned Item’ Fee to better explain what this fee is for. This fee is increasing from £5 to £6 (capped at £60 per month).
- There will no longer be interest charged for unarranged overdrafts.
