‘Volcanic ash disruption – what are the banks doing?’
April 23, 2010 at 2:20 pm
For travellers stranded abroad because of the volcanic ash disruption it is an expensive time. Many have paid thousands of pounds to get back to the UK, either by hiring a car or paying hefty fares on coaches, trains and ferries. Others are having to fund hotel and food bills for extended stays in resorts which may not be covered by their insurance policies. So what, if anything, are the banks doing to help their customers?
The British Bankers’ Association says that banks will be sympathetic to their customers’ plights but that there is no specific guidance regarding exceptional circumstances such as these in the Lending Code by which banks must abide. At the end of the day if your bank does not judge you able to make the repayments then they will not provide extended credit.
Their advice is that holidaymakers should contact their bank to see what help can be given and that banks will deal sympathetically with any request on a case by case basis. Many banks are, for instance, waiving ATM fees and fees for late payments on credit cards.
This is what some of the big names are doing:
- RSB/Nat West – fees waived for cash withdrawals abroad and credit limits extended where appropriate
- HSBC – fees waived for using debit or credit cards at foreign ATMs (whether or not customers are affected by the ash cloud)
- Lloyds TSB – cash machine fees waived as well as fees for going over credit limit or for late payment
- Barclays and Barclaycard – will consider requests for extension of credit limit or overdraft
