Free Banking Update

After writing a few months ago about how bank customers were reneging on the contracts they signed and suing their banks for ‘illegal’ bank charges, it appears that free banking is indeed in danger, with HSBC introducing a monthly fee. I’m glad to see that they won’t be charging them to those account holders with balances greater than £1,500 (read: those who rarely encounter fees anyway), but it’ll still be interesting to see how this shakes up the market. To me, this is a clear example of an unintended consequence of government regulation, in an area that would be better off left alone.