Prohibitive Bank Charges for the Indebted Tackled with Innovative New Current Account from EuroDebt

July 2009

Debt solutions provider launches Prepaid Current Account

Leading debt solutions business, EuroDebt Financial Services, is tackling the issue of prohibitive bank charges which seem to affect those that can afford them the least.

In partnership with Secure Trust Bank, EuroDebt has launched an innovative current account, including a MasterCard® Prepaid Card, which the company believes will be a genuine alternative to traditional basic bank accounts. The key benefit of the new account is that it features a low (£12.50) flat monthly charge and no penalty charges for failed direct debit or standing order payments.

"The reports of excessive bank charges for current accounts have been rife for some time", confirmed Kevin Still, Director, EuroDebt. "We are particularly concerned that families and individuals already in financial difficulties, but who are trying to get their finances back under control, are facing exorbitant charges simply for having a current account. This is despite the introduction of specific provisions for genuine financial difficulty in the latest Banking Code.

"Our new innovative current account aims to take the uncertainty that is sometimes associated with having a bank account - unexpected charges, etc - whilst still providing the convenience of paying in or withdrawing cash at most banks or other outlets that provide the facility to top-up the card, such as the post office. And central to achieving that goal is having low totally transparent charges that don't penalise people in financial difficulties as well as eliminating charges for failed direct debit or standing order payments.

"As a result we believe there is likely to be a monthly saving of at least £25 because the individual is no longer incurring transaction charges for failed payments or exceeding overdraft limits."

The EuroDebt Current Account, which is operated by Secure Trust Bank, provides a number of powerful benefits and importantly, takes into account the fact that applicants are likely to already have a number of credit accounts, many of which may be in arrears.

"More often than not, these types of higher risk individuals will face high and unpredictable charges associated with their current account" continued Kevin Still. "But this seems immensely unfair when they are trying to manage their already stretched finances as well as possible. Our goal has been to create a current account in association with Secure Trust Bank that gives holders certainty in terms of costs - and fair costs at that. We also want to deter the risk of social exclusion by giving clients the ability to make essential purchases through the cheapest medium such as online or over the phone."

Key benefits of the EuroDebt Current Account include:

• Flat low monthly fee of £12.50
• No Direct Debit or Standing Order fail charges and no other hidden costs
• Only 50p to withdraw cash through the MasterCard® facility on the prepaid account card
• Paying in facilities at Barclays branches
• Telephone and Internet banking facilities
• Multiple cardholders
• Linked savings accounts offering competitive rates - providing an interest bearing budget account for annual costs such as the car MOT and servicing.

Crucially, the account will offer virtually 'guaranteed acceptance', provided the applicant can prove their identity and residence. Their current level of debt will not affect their application, unlike other financial services. And all EuroDebt clients will be eligible whether they are entering a DMP, an IVA or Bankruptcy. It will be set-up and running very quickly, including the provision of paying-in slips, PIN and prepaid card. Transferring salaries, wages and other direct debits to the new account is very straightforward.

"We believe this is an exceptionally strong proposition for families and individuals already sinking under the weight of heavy debts" concluded Kevin Still. "The last thing they need is any unexpected charges. And it gives them a really flexible way to budget for monthly expenditure - separating essential expenditure from disposable income."

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