END OF FREE BANKING EMPHASISES NEED FOR POST OFFICE ACCOUNT

PENSIONERS COULD FACE DOUBLE WHAMMY FOR WITHDRAWING MONEY

Angus MP, Mike Weir, is calling on the government to abandon its proposals to end the Post Office Card Account and is seeking cross party support after lodging a parliamentary Motion on the issue.  Mr Weir’s action comes after internet bank, First Direct, set out to introduce a £10 monthly fee on customers holding current accounts of under £1,500.

Mr Weir who has long been a vocal opponent of the government’s Post Office plans; including ending the card account and opening up the Royal Mail to competition, said:

“The move to end free bank accounts underlines the urgent need for either the continuation of the Post Office’s card account or a similar replacement.  The card account is the only account specifically designed for those who receive and withdraw money, such as benefits and pensions. 

“This type of account remains an important part of the Post Office’s business, but the government seem intent on ending it in 2010, while refusing to give cast iron guarantees that a similar replacement will be brought in.

“The move by the bank, First Direct, to introduce a monthly fee on current accounts is likely to be followed up by the other major banks resulting in the end of free banking.

“This could lead to the situation whereby pensioners and low income families are hit with a double whammy.  Firstly, charged a fee for their bank account and secondly charged another fee to withdraw their money when operating an ATM machine. 

“This is totally unacceptable and the government must immediately confirm, either that there will be a replacement or that they are willing to reserve their initial proposal to end the card account, which would be the most logical action to take.”