The OFT approached the four banks as part of a strategy to improve will writing for customers, following concerns consumers are appointing professional executors without understanding their alternative options or the likely costs.
They have now agreed to ensure consumers know they do not have to appoint a professional executor when making a will, and consumers will not be encouraged to do so unless it is in their best interests.
The banks also agreed to ensure consumers have enough information to make an informed choice before a will is drafted, particularly on charging.
All of the banks are reviewing their processes and product literature and will make changes within the next six months.
“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,” says David Stallibrass, director in the OFT services and public markets group.
In January, the Society of Trust and Estate Practitioners (STEP) raised the alarm over the will writing market, claiming 75% of its members had witnessed “incompetence and dishonesty” within the market in the past year.
Of those, 38% of STEP members said they saw will writers who had “inappropriate relationships” with another company they recommended to clients, some of whom were IFAs or banks.
