Banks accused of ‘crippling the most vulnerable’

The National Consumer Council (NCC) insists that charges on current accounts are causing low earners to experience serious financial difficulties and pushing many families further into the debt management mire.

“Those on low incomes or with limited banking experience are most likely to be adversely affected. For them a default charge of £39 is enough to push them into debt,” said Ed Mayo, the council’s chief executive.

“It’s time banks stopped pulling the wool over people’s eyes and started behaving more responsibly.”

The NCC has called on the Office of Fair Trading (OFT) to oblige banks to give clearer explanations of their charging policies and to provide “basic” accounts that would give a straight forward service to the most vulnerable consumers.

Last week, the OFT highlighted the increasing problems many of the UK’s teenagers are having in finding a debt solution.