People in financial trouble can choose new fee-free current accounts - but banks still have the right to move them onto accounts with charges.
A basic bank account allows customers to use cash machines and direct debits but blocks them from overdraft fees. All the major High Street names have offered these accounts since January after a deal was thrashed out between the Treasury and the industry. But one charity says bank staff are not all aware of the accounts. Debt counselling service Christians Against Poverty (CAP) said that staff were inadvertently directing applicants with a chequered financial history to regular, fee-charging current accounts. The customers' applications are then inevitably rejected because they fail the credit checks. "It can be upsetting for people who are already dealing with debt," said Daniel Kelly, creditor relations analyst at CAP. "Many have had a negative relationship with banks for quite some time."....Read more here