Bank switching could avoid penalty charges

29/01/2010

Surveys from consumer rights monitor Which? have consistently found that people believe banks are treating them unfairly.

Excessive penalty charges were one of the main concerns which could have a major effect on those already finding it hard to cope with debt.

James Daley, money editor at Which?, said: "People often think that it's going to be difficult [to switch] and a bit of a hassle, and don't do it because they worry that direct debits won't get transferred over, bills won't get paid, something will go wrong."

But he added: "79 per cent of people that we asked who had switched their accounts said that they had found it 'very' or 'fairly' easy, and over half of them said that they hadn't had any problems at all."

Kevin Still, director of EuroDebt, commented: "Bank switching would seem a logical action for many consumers who have been treated badly through the recession, as reflected in the number of official complaints about customer service and over-charging.

"EuroDebt introduced its prepaid current account at www.bankswitching.co.uk for precisely this reason, people want transparent fees and to be able to set the account up quickly. There are no fees for failed direct debits or standing orders, a common cause of high bank charges."

Tags; Debt Management and Banking,

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