Financial Services Bill

New clauses 9 and 15 both touch on aspects of the charges payable by consumers for operating personal current accounts and savings accounts, and indeed for financial services contracts in general. We have had a useful debate with some good comments, especially on the issue of transparency. New clause 9 would require banks and building societies to offer at least one personal current account and one savings account free of charge for holding the account. New clause 15 would amend the Unfair Terms in Consumer Contracts Regulations 1999, which would allow for the assessment of the fairness of certain charges in financial services contracts. As has been mentioned, we discussed that point in Committee. As regards free accounts, I understand the desire to preserve the current model of so-called free banking, which suits many customers well. But I question the merits of mandating by putting into legislation "free banking" practices that are already widely available in the market. I am also concerned by the good governance aspect—we should not lightly act to compel any firm to provide free services that may not cover its costs.