Money News

Banks must warn customers when savings rates are cut

New regulation means banks and building societies will have to give customers more notice when their savings rates are being cut.

The City watchdog has set out new rules for banks and building societies that will force them to give customers a fairer deal.

Benefits for customers include getting access to more information about products up-front, being given at least two months notice if the bank is cutting their savings rates, and faster payments between accounts.

Dan Waters of watchdog the Financial Services Authority (FSA) (www.fsa.gov.uk) said: “New regulation will put banking customers in the driving seat by setting down clear standards that people can expect.”

The new rules also mean better protection for victims of fraud. Banks will now be forced to refund unauthorised transactions unless they can show the customer was at fault. Previously, the burden was on customers to prove their innocence.

The FSA will regulate the contact that banks and building societies have with their customers from 1 November. If firms fall short of these standards or fail to treat customers fairly, the FSA says it will take action.