Banks to remove currency charges

OVERSEAS travellers will no longer be charged for purchasing foreign currency in the UK with a debit card at five major banks, the consumer regulator announced yesterday.

By The Newsroom

Published 21st Dec 2011, 06:00 BST

Lloyds Banking Group, Barclays, Royal Bank of Scotland, Santander and the Co-operative Bank have all agreed with the Office of Fair Trading (OFT) to remove the charges, which are typically between 1.5 per cent and 2 per cent of the purchase.

Nationwide, HSBC and Halifax Bank of Scotland have not been charging debit-card fees for purchasing foreign currency in the UK.

At the same , the UK’s banks have agreed to give “clearer, more accessible” information about charges for using both debit and credit cards abroad, while many foreign exchanges have agreed to review marketing practices, particularly their use of “0 per cent commission” deals.

The OFT was asked in September to investigate allegations of complex charging and poor information for travellers following a “super-complaint” by Consumer Focus.