PPI Claim News - 2/11/2012
Bank charges: Industry action needed for 'basic bank accounts'
The financial services industry must ensure there is a minimum standard for bank accounts in order to move away from some of the poor products on offer by some firms, according to The Co-operative Bank.
Basic bank accounts typically have fewer features than a standard current account and are designed for those who may find it otherwise difficult to get an account, for example, if they have a poor credit history or bank charges.
The move towards these accounts came after more and more households reported they were struggling to open an account, but consumer groups have noted that this has created a "race to the bottom" in terms of basic accounts.
As part of this minimum standards framework, The Co-operative Bank believes there should be no extra cost to access money through a cash machine, an inclusive attitude towards customers with poor financial histories and improved transparency so basic accounts are advertised alongside other alternatives.
"If no action is taken on this issue, we believe that standards for basic banking will continue to deteriorate and as a leader in financial inclusion we are not willing to sit back and let that happen," said John Hughes, managing director of retail banking at the Co-operative Bank.
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.
blog comments powered by