UK: GOVT WARNS BANKS OVER ACCOUNT TRANSFERS
Article Abstract:
The reluctance of some of the major high street clearing banks to participate in an industry-wide system for the automatic transfer of bank account details has led to the government threatening legislation. The new scheme requires banks to provide details of all standing order and direct debit transactions so that the information can be given to the new bank. So far Lloyds, TSB and HSBC have all refused to take part. Barclays does participate, but only offers the service to certain customers, while the NatWest bank has bowed to pressure and just decided to join. The scheme follows on from recommendations made in Don Cruickshank's report into the banking industry, which said customers were not getting a fair deal because of the lack of competition amongst banks for current accounts, and urged the establishment of Pay-Com as the new regulator of bank transfers. New entrants like Smile and IF believe the major banks are deliberately making it difficult for customers to switch accounts. Currently if a person tries to move accounts the bank can refuse to pass details on to the new bank, forcing customers to arrange all automated payments to be transferred themselves. The Treasury is considering its response to the Cruickshank report, but has indicated legislation could be introduced in the next Parliamentary session forcing banks to join the scheme. Both Abbey National and IF have announced plans to win new current account customers, with IF planning to have 500,000 customers within three years.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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One hell of a deal
Article Abstract:
Bank of Scotland believed that establishing links with Pat Robertson, one of the most popular television evangelists in the US, would allow it to gain access to a potentially extremely profitable market. In fact, joining with Robertson has proved to be a public relations disaster for Bank of Scotland. Many trade union leaders, students, church activists and politicians have opposed the move, alleging that Robertson is a bigot. Bank of Scotland's share price has dropped, but the bank remains determined to push the deal through.
Comment:
Has reported that its links with US evangelist Pat Robertson has created uproar
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 1999
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UK: OFT MAY POLICE UK PAYMENTS SYSTEM
Article Abstract:
The government may change its plans on setting up a watchdog to police the high street banks' dominance of the UK payments system. Instead of setting up the PayCom watchdog under the Treasury, responsibility may now be passed to the Office of Fair Trading. This is a shift in government thinking as PayCom was a central recommendation of the report into the banking sector by Don Cruickshank. Legislation is expected to vest powers in OFT.
Publication Name: The Independent
Subject: Retail industry
ISSN: 0951-9467
Year: 2000
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