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Ministers must act on unfair bank charges says Rennie
December 1, 2009 5:30 PM
West Fife MP Willie Rennie has called on Ministers to force banks to offer people in the Kingdom a better deal after last week's Supreme Court ruling that will prevent customers from appealing against unauthorised overdraft charges.
The court found that under existing legislation, the current system of charges did not constitute 'unfair contract' and were therefore not subject to regulation by the Office of Fair Trading.
Recent research from consumer rights group Which?, who led the campaign against unfair overdraft charges, has revealed that common problems such as mis-selling, complex terms and conditions, and poor customer service still affect many people in the UK despite the massive financial support that the banking sector has received from the taxpayer.
Commenting, Mr Rennie said:
'After a tumultuous year in which billions of pounds of the taxpayer's money has been pumped into the UK banking system, individuals, families and businesses across the Kingdom are still being let down by their banks.
"In many cases we have seen banks selling customers products that they do not need, at a price they cannot afford.
"The efforts of the banks to prevent the exorbitant charges imposed on those who become overdrawn from coming under the scrutiny of the Office of Fair Trading are illustrative of the shift we have observed at the top of the banking industry, with a customer service ethos replaced by the profiteering that helped cause the financial crisis.
"It simply isn't right that someone on a low income should pay £25 or more to their bank just because they're overdrawn by a pound or two. The only way to protect millions of customers from being ripped off by their banks is to change the law."
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