Rip-off banks warned to improve will writing services
(Source: Financial Times Advisor - http://www.ftadviser.com/FinancialAdviser/Regulation/TaxationAndTrusts/PowersOfAttorney/News/article/20110225/ec2fbe60-40ca-11e0-8e70-00144f2af8e8/Ripoff-banks-warned-to-improve-will-writing-services.jsp)
The UK's biggest banks have agreed to improve their will writing and executor services after the Office of Fair Trading (OFT) ruled that lenders were ripping off customers by around £40m.
David Stallibrass, director in the OFT services and public markets group, said an investigation into Barclays, HSBC, Lloyds Banking Group and RBS found consumers were often unnecessarily appointing banks as executors at a high cost.
The Oft said in a statement, there is no requirement in law to appoint a professional executor to write a will, but for an average estate, consumers can pay between £3000 and £9000.
Mr Stallibrass warned that failing to shop around for executor services could be costing UK consumers £40m a year.
He said: 'The wrong decision when appointing executors could mean a potentially expensive professional service is chosen, when a family member or friend may be quite capable of handling the task either alone or with professional support.
"We are pleased that each of the banks has agreed to review its selling practices and marketing literature to ensure customers are getting the information they need to make informed choices."
The banks have agreed to amend literature and practises within the next six months so that consumers making a will should not be led to believe that appointing a professional executor is essential, in their best interests and that they understand the charges.
Tim Purdon, managing director of Ayrshire-based Paladin Financial Services, said: "The client should consult with his or her own solicitor to ensure the will is established to meet with their requirements."
