News from the BBC indicates that some fees on Foreign Exchange are being scrapped by Banks and Credit Card companies after pressure from the Office of Fair Trading.
The OFT has been looking at a complaint has filed by consumer focus (that the banks moaned about because they had no consultation)
More importantly, fees that are charged will be displayed more clearly in monthly statements – which some providers (lets give some examples…. MBNA, Barclays) have been lacking in.
Reports indicate that five companies (Three of which have been named – Lloyds TSB, Barclays and Royal Bank of Scotland) will drop the 1.5% to 2% to buy foreign currency within the UK (where before it was treated as a cash advance).
Companies have agreed to show on statements the charges incurred for using a card overseas, including the loading fee rather than combining it into the total cost, providing a bit more clarity for people who spend on these pieces of plastic.
For those who use Bureau De Changes/Foreign Exchange Bureaus the silly business of “0% Commission” could be coming to an end (where in fact you’re paying at least a 2%-4% charge on your purchase – based on data from Onada), with BDC’s/ForEx shoppies will have to reveal the true costs.
Banks and card companies will also show separately on statements those charges which are incurred overseas, including the typical “loading fee” of nearly 3%, rather than hiding them in the cost of the items travellers have bought.
Consumer Focus is still very ticked off with the banks and providers, stating the phrases such as “0% commission” and “competitive exchange rates” are misleading.
A fuller release from the OFT will be released during the day on Tuesday, which GhettoIFE.com will be monitoring during the day.