Banks ripping us off by over £11bn every year
6th July 2010
Brits are £30m worse of everyday due to "negligent" and
"profiteering" tactics by banks, according to a report.
The report, by consumer champion Co-operatives UK, estimates
that excessive bank charges and poor deals from banks costs every
British household an average of £430 a year - a total of
£11.2bn.
£3.2bn of that amount comes from "inefficient and excessive bank
charges" such as the extortionate fees for unauthorised overdrafts
and bounced payments.
The biggest rip-off, the report claims, is due to lack of
competition and diversity in the market. This has led to low
interest rates on savings accounts and exorbitant mortgage rates
and is costing consumers £8bn a year.
The cost - which the group says is "relatively conservative" -
represents 'consumer detriment' and is the amount customers would
gain if banks treated them fairly.
Ed Mayo, author of the report and secretary general of
Co-operatives warned the situation is "getting worse."
"Some banks are profiteering to recoup losses. They operate in
the interests of shareholders."
Brad Askew, managing director of consumer claims company Claims
Financial, said: "The amount by which banks are ripping off their
customers - the same customers who bailed them out from their own
pockets - is staggering.
"The banks are essentially running a cartel, keeping deals
uncompetitive to sting the consumer but ramp up their own profits.
It is time the government cracked down on such behaviour but
unfortunately I don't see it happening any time soon.
"In the meantime, if people find themselves unfairly dealt with
by the banks, be it through excessive bank charges or rubbish
interest rates, don't just sit there; stand up to the banks and
make your voice heard."
Claims Financial
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