Nationwide softens current account approach

12 March 2007
Nationwide has stopped closing down the current accounts of customers who have successfully reclaimed bank charges, the Guardian reports.

Although Nationwide responded to claims for compensation from customers disgruntled by the bank charges imposed when they exceeded their overdraft limits alongside the UK's other big banks in the UK, it was subsequently penalising many such customers by closing down their accounts, the paper found.

According to the Guardian, the bank has also redrafted its explanation letters to customers who have claimed compensation for charges.

Its previous practice was to send out a first letter promising a full refund followed by a second letter announcing closure of their account.

The Financial Ombudsman Service recently found in favour of a customer whose account was closed down after he won a refund from his bank – the watchdog castigated the bank for using closure "as a retaliatory or punitive measure".

It is currently looking at 50 more such cases.

The battle with the banks heated up over the weekend as it emerged that two million bank customers have now downloaded templates for complaint letters from campaign sites, including consumer body Which?

Learn more about reclaiming bank charges

To learn more about current accounts, click here.

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