RBS announces new penalty charges

Royal Bank of Scotland (RBS) customers face more costs and fees as the bank continues to look for ways to recoup revenue lost when the Office of Fair Trading (OFT) decided that penalty charges could not amount to more than £12.

The credit card company announced that it would charge customers a penalty charge if they did not notify the bank of a change of address.

Under the new rule, the bank would charge customers £12 after two statements were sent to a no-longer valid address, or about two months after a move.

Richard Mason, head of credit cards at the price comparison analyst website Moneysupermarket.com told The Independent: "I’ve never come across this kind of charge before."

According to the BBC the bank also has plans to charge its cash withdrawal fee, a higher percentage levied when customers use an ATM, every time a credit card is used to buy a range of "cash equivalent" products.

Items such as gift vouchers and betting will now incur these higher charges.