Consumers encouraged to put pressure on banks

James Alexander, co-founder and chief executive of online marketplace Zopa, claims that securing massive profits at the expensive of consumers – an increasing number of who are now turning to Individual Voluntary Arrangements (IVAs) or declaring bankruptcy – has become “institutionalised standard practice amongst the big banks”.

Collective pressure applied to banks by their “long-suffering customers” could in time force changes and improvements in terms of the quality of services supplied to British consumers, Zopa maintains.

“Of course, the more effective way for frustrated customers to apply their own pressure is simply to vote with their feet – something we don’t do enough of in this country,” said Mr Alexander.

A recent study carried out by Zopa claimed that Brits in debt could be paying a full £9.3 billion too much in loan repayments each year.