RBS/NatWest plan to proactively refund overdraft fees

Commenting on the RBS/NatWest plan to proactively refund overdraft fees to customers if it loses the OFT court case, Kevin Mountford, head of banking at moneysupermarket.com, said: "On the face of it this is a noble gesture by RBS, however it should really be common practice for all banks if it's ruled they have treated their customers unfairly. Banks have clearly been fearing the worst in the OFT case and are already adjusting customers' interest rates to gain some of the extra pounds they may need.

"RBS has played a clever game this week - announcing a six-month moratorium before starting repossession proceedings against borrowers who default on their mortgage payments followed by this news today. It would be nice to think the Government's part-ownership of RBS is pushing it in a more ethical direction, but arguably it is yet to be seen with the Government's other banks.

"One way or another we need to draw a line under the overdraft fees issue so we can start to see renewed activity in the current account market."