Britons in the UK are expected to be saved from penalties that come up when banks impose a charge for automatic payments that cannot be processed, due to impending changes from the Financial Conduct Authority (FCA).
Subject changes from the FCA, seven of the UK’s high street banks will be expected to implement a ‘retry system’ when payments such as direct debits and standing orders fail to go through.
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This is expected to save the nation’s savers pocket a collective GBP200 million, which is expected to be the total sum for penalty fees incurred through the old system that charged people if they did not have sufficient funds to cover future dated payments.
It is believed that this system will offer more balance to banking and averting situations like, an individual’s payment is debited before their salary has been processed.
With the retry system set to be implemented to help ensure customers have enough cash in their accounts, direct debits and other automatic payments are often taken early in the morning, FCA reported.
As part of the measures, that will be implemented by Barclays, The Co-operative and HSBC among others, people will be given upgraded information about the time by which money must be in their account to meet outgoing payments.
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By GlobalDataThis benefits Britons of all ages by giving them a better handle on their cash and helping them build a pot for retirement.
On 5 Jun 2013, FCA fines Sesame over GBP6 million for keydata advice and suitability failings.
The FCA’s director of supervision, Clive Adamson, said: "It is the little things like this that have a big impact on customers’ everyday banking experience, even though many people won’t be familiar with the process. This is a small adjustment, but one that will make a big difference."
