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Banks and credit card companies today agreed to repay up to £300,000 in profits they have made from the tsunami appeal.
They bowed to pressure after charities accused them of cashing in on public sympathy for victims of the Asian disaster.
The windfall arose because financial institutions charge a fee of up to three per cent on charity donations made by credit card on the phone or internet.
While the industry agreed last week to waive its fees for donations to the main Disasters Emergency Committee collection, it continued to charge individual charities, including Oxfam and the British Red Cross.
Today’s climbdown follows urgent talks this morning between banking chiefs and the main aid agencies. Apacs, the industry body representing credit card providers, said: “The charges will be waived.”
The move will be backdated so that individual charities can reclaim fees paid on donations already received totalling more than £11 million. The banks were forced to retreat in the wake of a barrage of criticism from Downing Street, MPs and charities. The Prime Minister’s spokesman said: “Clearly, we would like as much money as possible to go to the people so badly affected by this crisis.”
Aid agencies had said that the £300,000 could pay for 140 water tanks, providing clean drinking water for 420,000 people, or 180 classrooms.
thisislondon.com/news/articles/15747736?source=Evening%20Standard&ct=5
They bowed to pressure after charities accused them of cashing in on public sympathy for victims of the Asian disaster.
The windfall arose because financial institutions charge a fee of up to three per cent on charity donations made by credit card on the phone or internet.
While the industry agreed last week to waive its fees for donations to the main Disasters Emergency Committee collection, it continued to charge individual charities, including Oxfam and the British Red Cross.
Today’s climbdown follows urgent talks this morning between banking chiefs and the main aid agencies. Apacs, the industry body representing credit card providers, said: “The charges will be waived.”
The move will be backdated so that individual charities can reclaim fees paid on donations already received totalling more than £11 million. The banks were forced to retreat in the wake of a barrage of criticism from Downing Street, MPs and charities. The Prime Minister’s spokesman said: “Clearly, we would like as much money as possible to go to the people so badly affected by this crisis.”
Aid agencies had said that the £300,000 could pay for 140 water tanks, providing clean drinking water for 420,000 people, or 180 classrooms.
thisislondon.com/news/articles/15747736?source=Evening%20Standard&ct=5