Boost for small businesses as RBS freezes overdraft charges
Published Date:
23 November 2008
THE Royal Bank of Scotland is to freeze overdraft charges for small businesses following furious complaints from firms who have watched their rates rocket in recent weeks, writes Eddie Barnes.
From the beginning of December all overdrafts at the bank will be fixed in place for 12 months.
The bank will also hold off from demanding immediate repayments for that year.
Thousands of businesses have been informed by their banks that overdrafts are being either withdrawn or increased. One claimed its overdraft had been raised without warning from 2% above base rate to 6% above.
The sudden increases have been prompted because the credit crunch has starved banks of ready cash.
Government sources last night said pressure from within the Treasury had led to the move, which came just days after shareholders agreed to the partial nationalisation of the bank.
The freeze also applies to NatWest.
The full article contains 155 words and appears in Scotland On Sunday newspaper.
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Last Updated:
22 November 2008 9:10 PM
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Source:
Scotland On Sunday
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Location:
Scotland
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Related Topics:
Royal Bank of Scotland
,
Credit Crunch
