Woolwich savers could be charged £10 for cheque withdrawals

Customers with the Woolwich were recently concerned to discover that their accounts were being switched over to Barclays, as the Woolwich focuses on becoming the mortgage provider for Barclays.

Over three million consumers with savings account and two millions customers with current accounts will be affected by the changeover, and many are outraged and concerned about the move.

To make matters even worse these consumers have been told that Barclays will be introducing a fee that could end up costing some people a small fortune. In the past those with savings accounts with the Woolwich were able to go in to a branch and make a payment by corporate cheque, where the Woolwich would issue a cheque to make a payment on behalf of the consumer, and the amount of the cheque would be deducted from the customer's savings account. This was a process that was free of charge.

However, unless there is no other alternative other than to pay by cheque, Barclays will be charging savings account holders ten pounds each time they do this, which for some could soon add up to a small fortune. Barclays states that if there is an alternative means of making a payment, such as electronically, then it must be used, but added that if a cheque payment was the only means of payment then the charge would be wavered.

One angry Woolwich customer wrote: 'I for one have had enough. I switched my mortgage a year ago away from them, I've recently switched my current account to someone who at least acts as if they care, and savings will follow next month too. So thanks for the memories Woolwich, but you now have £50k less invested with you and my £80k mortgage is now elsewhere.'

Tom Smith
23rd May 2007

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