Wednesday 2nd May 2007
Holders of Royal Bank of Scotland (RBS) current accounts may be charged up to £12 if they fail to inform the bank of a change of address.
The fee, believed to be unique to the RBS group, is likely to impact customers of the bodys other banks, including NatWest and Mint.
A spokesperson for RBS explained: "It is in the interest of our customers to ensure the contacts details we hold for them are correct.
"We give clear instruction on each monthly statement on how to contact us to update these details."
Customers are to face the £12 charge if two statements are returned to the bank prior to the account holder updating their address details.
The spokesperson added that the bank implements a tracing procedure if statements are returned, in order to protect current accounts against fraud.
Such deception is on the increase, according to the Credit Industry Fraud Avoidance Scheme (Cifas).
Figures for the first quarter of 2007 showed a 15.6 per cent rise year-on-year in the number of incidences of current address fraud.
Deception on the grounds of incorrect current addresses now accounts for 60 per cent of all that reported by banks, Cifas found, up from 44 per cent in 2006.
However, RBS has come under criticism for imposing the fee in light of the Office of Fair Tradings (OFT) review of charges on personal current accounts.
The OFT stated that it is to examine bank charges for events such as customers going into unauthorised overdrafts, while a previous study last May resulted in the office ruling that penalties for late bill payments should be limited to £12.
RBS is not the only bank facing accusations of attempting to recoup lost earnings by introducing new charges and penalties.
Phil Hartney, a reader of the Mirror, revealed to the publication a £10 fee imposed on his credit card account by Virgin Money.
He explained that the financial services provider had charged him for remaining in credit over a 12-month period.
A Virgin spokesperson told the Mirror: "Customers were warned it was coming."
However, the terms and conditions presented to applicants seeking a Virgin Money credit card online make no mention of the penalty.
While the website advises applicants to "see the terms and conditions for full details", charges outlined include a fee for obtaining copies of documents such as statements and for making transactions in foreign currency, but do not list a penalty for remaining in credit for any length of time.
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