Trade union complains of banks' target culture

16/11/2009

Many of the nation's banks are still encouraging Brits to take on unsustainable levels of debt, potentially storing up money problems for the future.

Trade union Unite said that bank staff are being set targets by management that encourage sales to customers who do not need the financial products in the first place.

This means that bank customers could face more serious difficulties due to the premiums and other associated costs of these unnecessary products, Unite argued.

Bank staff themselves, who can be on basic annual salaries as low as £13,000, could also suffer if they do not meet the targets.

The Unite report follows a survey from consumer group Which? conducted last month, which showed that around two in three Britons still feel "angry" with bankers in the wake of the credit crisis.

Around one in three also said that the government should allow banks to go bust in future crises, rather than launching bailout plans to save the firms.

Commenting, EuroDebt director Kevin Still said: "The vast majority of the public feel that the banks are unrepentant about their treatment of customers and by the admission of the UK's biggest union the banks are continuing to exploit their customers, whilst not addressing the major areas of complaint identified by the FSA in their quarterly figures.

"This is especially true around the quality of customer service and over-charging, especially to vulnerable clients. It looks like the age of 'free banking' is coming to an end and consumers need to vote with their feet when selecting a suitable provider based upon how they manage their account. EuroDebt has established a pre-paid current account that is eligible to all UK residents and is not subject to credit checks. There is only a small monthly fee of £12.50 and no charges for failed direct debits."

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

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