Banking system branded unfair and confusing

A consumer campaign group in the UK has branded a payment system used by the UK banking industry as confusing and unfair. The system has been designed to make transactions quicker and easier, but according to officials from the consumer campaign group Which? the system is actually unfair and confusing.

The Faster Payments Scheme that is used by the banking industry was brought in a couple of years ago, and its aim was to streamline and speed up payments for consumers. However, many bank customers and still waiting three or four days for payments to clear despite the scheme being in place. There are also still many restrictions in place with regards to limits and types of transactions that can come under the Faster Payment Scheme.

According to data a quarter of credit card companies are still unable to receive faster payments. It is estimated that around 80 percent of one off phone and online transactions clear on the same day, but the amount allowed per transaction can vary widely.

Only around 50 percent of standing orders can be sent through as faster payments according to the data, and campaign officials are now concerned that customers are still having to wait for payments to clear and put up with so many restrictions even though this scheme has been in place for two years.

Phil Jones, personal finance campaigner at Which?, said: ”It’s unacceptable that, two years on from the introduction of faster payments, many customers are still having to wait three to four working days for money to clear. ‘The limits set are confusing and customers can be caught out with default fees which could affect their credit rating if the money does not clear in time.”