Say sorry, banks told

15/10/2009

Recession-hit consumers are still very angry with banks, it has been revealed.

Consumer group Which? polled members of the public about their feelings towards the firms - and found that three in four believe that banks are not "genuinely sorry" for the credit crunch.

Meanwhile, around four in five said that bankers had "not done enough" to prevent future financial crises - and three in five said that they had not "learnt their lessons".

Risky business plans pursued by financial services firms around the world in the run-up to the credit crunch are widely seen as being a crucial cause of the crisis.

Banks have faced significant balance sheet damage as a result of the crunch, with five firms either being partly or fully nationalised through government bailouts costing taxpayers billions of pounds.

Credit criteria have also been tightened for customers, making it harder to get an affordable mortgage, loan or card and increasing some people's debt problems.

Louise Hanson, Which? head of campaigns, said: "People tell us they're angry - a year after the bailout, banks are still treating them like second class citizens with poor customer service and shoddy sales tactics."

Kevin Still, EuroDebt director, added: "Long gone are the days when your time with your bank counted for something. It is evident that fair weather bankers will court you when you represent minimal risk and have assets to manage, but when times get bad there is little evidence of experienced and trained personnel in client facing positions to help.

"People in financial difficulty want to speak to someone that is clearly looking after their best interests and not looking to solely protect the position of the bank, even if you have been a model client for many years and probably will be in the future. This particularly applies to bank accounts where the volume of complaints to the FSA regarding over charging were huge.

"EuroDebt has established a pre-paid current that is available to all UK residents with no credit checks, even if you are on a Debt Management Plan, in an IVA or bankrupt. There are no fees for bounced direct debits, simply a low monthly charge. Transparency is key to give consumers confidence."

The government's October 2008 bailout of three banks cost £37 billion.

Tags; Debt Management and Banking, Young Family Finances, Credit Card Lifestyle,

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