The Office of Fair Trading (OFT) has put pressure on banks and card companies to remove some of the currency fees that are applied to customers. Following an investigation into currency conversion, it has been found that for the same service, charges range from £10 to £30.
At present, banks including Lloyds TSB, Barclays and Royal Bank of Scotland all charge between 1.5% – 2% when customers use their debit cards to purchase foreign currency whilst still in the UK. It has now been agreed that this fee will be removed.
Companies have also decided to show a breakdown of costs more clearly in monthly statements. Currently, loading fees of up to 3% can be applied to purchases overseas, so now consumers will be able to see the amount of this charge separately, rather than hidden in the cost of the item purchased.
Many companies advertise 0% commission offers, but the exchange rates offered include fees added on by the supplier, so not as fee free as they appear. Companies are being encouraged by the OFT to make offers such as these much more transparent, so people are aware of the fees they are paying.
