If the consumer is victorious in the unfair bank charges battle the masses could lose out, according to MoneyExpert.com.
The price comparison site says that if further rulings on the issue of bank charges go the consumer’s way, banks are likely to look for alternative sources of revenue and this could mean the end of free banking.
Sean Gardner, founder of MoneyExpert.com, said, “The recent announcement provoked a huge amount of excitement yet it’s worth bearing in mind that this legal battle is far from over. We still have to wait for a further hearing – which might not be until next year – before it is decided by the court whether or not the charges are unfair.
“And the banks actually persuaded the judge that these are service charges, not penalty fees, meaning the fee they charge for unauthorised overdrafts doesn’t just have to cover their costs.”
MoneyExpert.com says that 80 per cent of people don’t pay charges currently, instead, managing their accounts so that they do not slip into the red, and it is these people, it claims, that will suffer.
“Given that most people would prefer not to see the end of free banking and would only be prepared to pay a modest monthly fee the majority of bank customers stand to lose if the banks eventually lose this case,” said Mr Gardner.
MoneyExpert.com’s research shows that 66 per cent of people would not be prepared to pay for banking, and of those that would, only 9 per cent would be prepared to pay between £6 and £10 – last year, the average acceptable monthly fee was £7.29. Most people would only be willing to pay between £1 and £5 a month for their accounts.
