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Peter Black and South Wales West Liberal DemocratsRepresenting Aberavon, Bridgend, Gower, Neath, Ogmore, Port Talbot, and Swansea |
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Bank charges make the case to keep Post Office Card Account says AM
November 15, 2006 2:20 PM
Peter Black and Helen Ceri Clarke at a local Post Office
Plans by banks to charge their customers for running a current account unless they pay in or keep a balance of at least £1,500 a month could hit many pensioners hard and leave them with no means of collecting their pension if the Post Office Card Account is abolished according to Welsh Liberal Democrat Assembly Member, Peter Black.
The new charges have been announced by First Direct Bank but indications are that other banks will follow suit. The Government have been working to force people to receive their pensions and benefits direct to their bank accounts for some time instead of collecting the money at their local post office. As a result Ministers plan to phase out the Post Office Card Account in a few years time. There are concerns that this will result in lots of Post Office closures but it will also mean that payments can only be made in future direct to bank accounts.
"If the major Banks follow the example of First Direct and impose charges then they will be denying pensioners and those dependent on benefits the chance to have a bank account," said Mr. Black. "There is no way that many of these people will be able to pay £1,500 into their account each month so as to avoid charges, and the level of those charges will be disproportionate compared to their very limited income."
"This move could well compound the Government's problems with regards to the Post Office card account. If those on low incomes are forced to abandon their bank accounts then they will have no way to receive their pensions and benefits. This is yet another reason why the Government need to reconsider their decision to abolish the Post Office card account."
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