Menu
15/05/2007
NI customers should pay 'fewer bank charges'
Banks in Northern Ireland must make improvements to ensure their customers pay fewer bank charges, a report has stated.
The Competition Commission (CC) found that competition was limited by banks' “unduly complex” charging structures and practises and their failure to explain them and customers’ reluctance to switch to another bank.
The report also said the four major banks, which control 75% of the current account market, must now make major improvements to their personal current account (PCA) services in Northern Ireland.
These include providing better and clear information to help them understand banks PCA services, charges and interest rates; giving customers at least 14 days notice before deducting charges and interest from their accounts; and introducing improvements to the switching process to ensure customers who switch banks do not incur costs doing so.
Christopher Clarke, Chairman of the Inquiry Group and CC Deputy Chairman, said: “Our measures will ensure a better deal for personal current account customers in Northern Ireland.
He also said by enabling customers to understand the costs of operating their PCAS they would be “much better placed” to make decisions.
“Customers will also be in a much better position to choose which PCA and which bank best suits their own personal circumstances. An increase in switching bank accounts, or an increase in the possibility of doing so, will incentivize banks to provide better terms and clearer conditions. Such an increase in competition can only benefit customers,” he said.
The Ulster Bank also responded to the report, saying it maintained that the personal current account market in the province, was “very competitive”.
They said: "We agree with the Competition Commission that customers must be encouraged to seek out the best PCA to match their own personal needs and the Ulster Bank remains committed to providing clear information to help them do so."
(JM/KMcA)
The Competition Commission (CC) found that competition was limited by banks' “unduly complex” charging structures and practises and their failure to explain them and customers’ reluctance to switch to another bank.
The report also said the four major banks, which control 75% of the current account market, must now make major improvements to their personal current account (PCA) services in Northern Ireland.
These include providing better and clear information to help them understand banks PCA services, charges and interest rates; giving customers at least 14 days notice before deducting charges and interest from their accounts; and introducing improvements to the switching process to ensure customers who switch banks do not incur costs doing so.
Christopher Clarke, Chairman of the Inquiry Group and CC Deputy Chairman, said: “Our measures will ensure a better deal for personal current account customers in Northern Ireland.
He also said by enabling customers to understand the costs of operating their PCAS they would be “much better placed” to make decisions.
“Customers will also be in a much better position to choose which PCA and which bank best suits their own personal circumstances. An increase in switching bank accounts, or an increase in the possibility of doing so, will incentivize banks to provide better terms and clearer conditions. Such an increase in competition can only benefit customers,” he said.
The Ulster Bank also responded to the report, saying it maintained that the personal current account market in the province, was “very competitive”.
They said: "We agree with the Competition Commission that customers must be encouraged to seek out the best PCA to match their own personal needs and the Ulster Bank remains committed to providing clear information to help them do so."
(JM/KMcA)
Related Northern Ireland News Stories
Click here for the latest headlines.
21 June 2012
Ulster Bank Error Leaves Customers' Payments Delayed
Ulster Bank has admitted ongoing delays in processing payments and warned it may take until tomorrow (Friday) for the backlog to be cleared. The bank thanked customers for their patience and said that anyone who needs to access their salary or social security payments urgently should go to their local branch with account details and ID.
Ulster Bank Error Leaves Customers' Payments Delayed
Ulster Bank has admitted ongoing delays in processing payments and warned it may take until tomorrow (Friday) for the backlog to be cleared. The bank thanked customers for their patience and said that anyone who needs to access their salary or social security payments urgently should go to their local branch with account details and ID.
10 February 2005
Police warn of internet bank scam
Police have called on members of the public to be on the alert when disclosing personal bank details in responding to job advertisements posted on the Internet. This follows reports of a scam to use these bank accounts to facilitate theft and money laundering.
Police warn of internet bank scam
Police have called on members of the public to be on the alert when disclosing personal bank details in responding to job advertisements posted on the Internet. This follows reports of a scam to use these bank accounts to facilitate theft and money laundering.
12 June 2024
Bank Of Ireland Launches New Limited Fixed Term Deposit Account
Bank of Ireland UK has introduced a new Limited Edition Fixed Term Deposit account, providing savers with a guarantee on interest rates as they lock their funds in for a year. Available to customers across the UK, existing and new to bank customers can save between £2,000 and £1,000,000 in a single deposit with a competitive 4.
Bank Of Ireland Launches New Limited Fixed Term Deposit Account
Bank of Ireland UK has introduced a new Limited Edition Fixed Term Deposit account, providing savers with a guarantee on interest rates as they lock their funds in for a year. Available to customers across the UK, existing and new to bank customers can save between £2,000 and £1,000,000 in a single deposit with a competitive 4.
21 September 2021
Ulster Bank Offers New £150 Switch And Save Reward
Ulster Bank has announced the launch of its new Ulster Select account, offering a £150 Switch and Save reward for new and existing customers.
Ulster Bank Offers New £150 Switch And Save Reward
Ulster Bank has announced the launch of its new Ulster Select account, offering a £150 Switch and Save reward for new and existing customers.
06 July 2012
Ulster Bank Boss To Skip Bonus
The chief executive of Ulster Bank has confirmed he will not be taking his bonus this year. Jim Brown's decision to forego the annual payment comes as thousands of customers in Northern Ireland and the Republic are still affected by a computer failure that happened weeks ago.
Ulster Bank Boss To Skip Bonus
The chief executive of Ulster Bank has confirmed he will not be taking his bonus this year. Jim Brown's decision to forego the annual payment comes as thousands of customers in Northern Ireland and the Republic are still affected by a computer failure that happened weeks ago.
-
Northern Ireland WeatherToday:A cloudy day with outbreaks of mainly light rain at times, although there may be the odd heavier burst. Driest in the south and east during the afternoon. Moderate southwesterly winds. Maximum temperature 11 °C.Tonight:Staying cloudy throughout the evening and overnight period with a little rain or drizzle at times. Mild overnight with light winds. Minimum temperature 7 °C.
