The Halifax has announced that it has banned millions of customers from using its counters for personal banking. It has told users of it 'basic accounts' banking service that they will no longer receive a face to face banking service.
'Basic accounts' are a government backed banking scheme attempting to boost social and financial inclusion among people on low incomes.
While Halifax was one of the first to provide basic accounts, it now appears to have decided the scheme is more trouble than it is worth, telling account holder they must conduct all their banking through ATMs, the internet - which many lack access to - or 0845 telephone lines charging 4.2p a minute rather than the usual three pence.
Halifax says its service to this group costs it £25m a year. Many basic banking account holders live on benefits or pensions while others will have been refused an ordinary bank account because they do not have a credit history or have had court orders against them.
They also include many elderly people who are highly uncomfortable dealing with machines rather than people, and many who are in the most need of financial advice.
"We are extremely concerned. This is potentially very damaging. The impression given is that these customers are a nuisance and that they are being shunted aside in favour of others considered more valuable," Derek French of the Campaign for Community Banking told This is Money.
"The industry did not want to set up basic bank accounts at all. Effectively, their hand was forced by the government, however they now seem to be reducing the service offered to this group to an absolute minimum."
Millions banned from Halifax branches
Financial Services > e-banking > Banking news
Millions banned from Halifax branches
Fri, 02 Sep 2005
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